Post Updated 28th Dec 2013
GOODYEAR TYRES Early Days; no longer number one in 1990.
In 1990 the French company Michelin tyres bought out another tyre company called BF Goodrich tyres of America.This was a good capture for Michelin because Goodrich had previously merged with Uniroyal tyres.
In the GOODYEAR TYRES Early Days, Firestone tyres and General tyres had suffered sales volumes at the hand of Goodyear tyres dominance in the radial tyre market and Firestone were taken over by tyres of
Japan and General were bought out by Continental of Germany. These bigger companies were now at the same size as Goodyear tyres and the buy out moves started to have an impact on Goodyears sales. GOODYEAR TYRES Early Days had their fingers in other non-tyre ventures, one of which was The “All American Pipeline”. This company was producing operational losses and was costing Goodyear over $3 billion of debt, but Goodyear tyres were slow to react and make changes , resulting in the appointment of a Mr C Gault as chairman of the company.
Goodyear tyres were now suffering and between 1989 and 1991 they shed over 12000 jobs, 10% of its workforce. The redundancies came mainly from the white collar section of the workforce, The giant tyre company also set about restructuring its factories with some closures and others being modified, this reconstruction of the company was estimated to save Goodyear tyres over $250 million a year in savings.
Goodyear tyres believed adamantly in the research and development program and kept up the spending on new tyre development, something that GOODYEAR TYRES Early Days were very passionate about. The company started to bring out new products on the back of this development and new tyres began to emerge, the first ones been the The Goodyear Eagle GT and the Eagle GA. I remember these tyre well, they were modeled for the more luxury cars in the early nineties. These new products helped Goodyear tyres to regain the market share that they lost to the Michelin group and in 1992 they restructured their debts to a more manageable amount of around $1.5 billion.
Another great new tyre to come out of Goodyear tyres in the early nineties
was the “Aqua tread”, which was an all season tyre sold around the World and will be remembered by older drivers. The new tyre was launched simultaneously across the globe. I remember attending the Goodyear tyres launch on their test track in Luxembourg and the tyre became a huge success.
About Eric Roberts
Hi I would like to introduce myself. I have worked in the Garage and GOODYEAR TYRES Early Days and Cheap Car Battery industry now for 40 years. I worked for a couple of national tyre companies before starting my first business. I now own a company here in the UK called Pellon Tyre and Auto-centre, and I am a keen blogger about anything to do with cars and their related products that will help my business.