Akron, Ohio – The Goodyear Tire & Rubber Company will cease production at its tire plant in Amiens, France, as part of its strategy to reduce high-cost manufacturing capacity globally.
The action will mean approximately 820 of the 1,200 jobs at the plant will be lost by the third quarter of 2010. The plant also produces farm tires. Production at a second tire plant in Amiens, employing about 1,000 people, will not be affected.
“This action is a result of the plant’s uncompetitive costs,” said Serge Lussier, vice-president of manufacturing for Europe, Middle East & Africa (EMEA). “Reaching a union agreement to modernize the operation proved impossible. Due to high costs and weak industry demand, the consumer tires produced there are uncompetitive in the marketplace.”
Discontinuation of consumer tire production at the Amiens plant will result in the reduction of approximately six million units of production, which is part of Goodyear’s strategy to remove 15 to 25 million units of capacity over the next two years.
Goodyear also said that it will explore divesting its farm tire businesses in EMEA and Latin America. Its Asia Pacific farm tire business is not included in any potential sale. Goodyear sold its North American farm tire operation in 2005.