Goodyear to Close Manufacturing Facilities in Germany
Goodyear Tire & Rubber has announced plans to close two of its manufacturing facilities in Germany as part of a turnaround strategy for the Europe, Middle East, and Africa (EMEA) region. In a recent Securities and Exchange Commission filing, the tire manufacturer stated that its Fürstenwalde and Fulda plants will be permanently shut down to reduce production expenses and enhance its competitive position.
This move will result in approximately 1,750 job reductions as part of the cost-cutting plan, which was approved on November 15. These closures replace previous measures implemented on May 31, which aimed to reduce production at the Fulda plant by around 50%.
To implement the turnaround plan, Goodyear Tire & Rubber expects to incur pretax costs of $575 million to $600 million. The majority of these expenses are expected to be recorded by 2025, with the remaining costs booked by the end of 2027.
Additionally, the company aims to achieve annual run-rate savings of approximately $60 million by the end of 2025, $100 million by the end of 2026, and $120 million by the end of 2027.
Goodyear Tire & Rubber currently operates three other manufacturing sites in Germany, located in Hanau, Riesa, and Wittlich, according to its website.
In a separate announcement, Goodyear revealed its plans to explore strategic alternatives for certain units, including its chemical business and Dunlop brand of tires, as it optimizes its portfolio.
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