Goodyear Tyres Early Days
Goodyear Tyres Early Days- no longer number one in 1990.
So, in 1990 the French company Michelin tyres. Bought out another tyre company called BF Goodrich tyres of America.This was a good acquisition for Michelin because Goodrich had previously merged with Uniroyal tyres. So making a massive tyre manufacturing conglomerate.
of course, in Goodyear tyres early days. Consequently, Firestone tyres and General tyres had suffered declining sales volumes. Subsequently, at the hand of Goodyear tyres dominance. Especially, in the radial tyre market. Firestone were taken over by tyres of Japan.
General were bought out by Continental of Germany.
Due these amalgamations. These bigger companies had now grown into the same size as Goodyear tyres. So, having an impact on Goodyears sales. Goodyear, had their fingers in other non-tyre ventures. Including the “All American Pipeline”. This company was producing operational losses and was costing Goodyear over $3 billion of debt. However, 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. Consequently, between 1989 and 1991 they shed over 12000 jobs, 10% of its workforce. 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 programs
Of course, they kept up the spending on new tyre development. Something that GOODYEAR TYRES were very passionate about. The company started to bring out new products on the back of these new developments. Passionately, new tyres began to emerge. 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
Of course, 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.
the excellent Goodyear efficient grip tyre Eric Roberts