The Goodyear Tire & Rubber Company today announced that it has ceased production at its tire manufacturing facility in Union City, Tenn. On February 10, Goodyear had announced its intention to close the plant by the end of 2011.
“When we announced our intention to close the plant, we expected the shutdown would occur by year-end,” said Chairman and Chief Executive Officer Richard J. Kramer. “Since then, the product transfers to the other Goodyear plants have been completed more quickly than expected. We are now able to meet the needs of our consumer tire customers without further production in Union City.”
This action is consistent with plans outlined at the company’s investor meeting earlier this year.
As a result of the accelerated closure and payments to approximately 1,800 associates under the federal Worker Adjustment and Retraining Notification Act, Goodyear expects to record additional after-tax charges of approximately $20 million. The majority of these additional charges will be recorded in the second quarter of 2011.
Additional information, including details on the timing of charges and savings, will be provided in conjunction with Goodyear’s second quarter 2011 earnings announcement.
Goodyear is one of the world’s largest tire companies. It employs approximately 72,000 people and manufactures its products in 54 facilities in 22 countries around the world. For more information about Goodyear and its products, go to www.goodyear.com.
Certain information contained in this press release may constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to realize anticipated savings and operational benefits from our cost reduction initiatives or to implement successfully other strategic initiatives; increases in the prices paid for raw materials and energy; pension plan funding obligations; actions and initiatives taken by both current and potential competitors; deteriorating economic conditions or an inability to access capital markets; work stoppages, financial difficulties or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; a labor strike, work stoppage or other similar event; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.