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Goodyear Tire's transformation plan is underway — in the sky and on the ground

Mar 08, 2025 - cnbc.com
Goodyear Tire & Rubber Co., under CEO Mark Stewart, is undergoing a transformation plan called "Goodyear Forward" to adapt to changing market conditions and increase profitability. The plan aims to double the operating income margin to 10%, achieve $1.5 billion in cost reductions, and generate $2 billion from asset sales. The company is investing in new technologies like artificial intelligence and 3D printing to enhance production efficiency. Despite some skepticism from investors, Goodyear has reported five consecutive quarters of margin growth and improved retail performance. The company is also focusing on expanding its retail and high-end tire businesses, including launching products for vehicles like the Ferrari sports car.

Goodyear's iconic blimps continue to serve as a powerful marketing tool, celebrating their 100-year anniversary. The company has built over 300 blimps, with the latest models featuring advanced technology. Goodyear's international operations span 53 facilities in 20 countries, with significant manufacturing in the Americas and Asia-Pacific. The company faces challenges from low-cost imports and geopolitical uncertainties, but it remains the last major U.S. tire company, competing globally with Michelin, Bridgestone, and Continental. Goodyear is leveraging simulation technology to reduce R&D costs and improve product development, aiming to solidify its transformation and growth strategy.

Key takeaways:

  • Goodyear is undergoing a transformation plan called "Goodyear Forward" to improve efficiency, profitability, and competitiveness, aiming to double its operating income margin and reduce costs.
  • The company is leveraging its iconic blimps as a marketing tool to connect consumers with its products and services, celebrating the 100-year anniversary of its first blimp, Pilgrim.
  • Goodyear is investing in new technologies such as artificial intelligence and 3D-printing to enhance product development and production, while also expanding its high-end tire offerings.
  • Despite progress in its transformation plan, Goodyear faces challenges from geopolitical uncertainties, low-cost competition, and investor skepticism, with its stock down since the plan's announcement.
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