Latest news with #GoodyearTire&RubberCo.
USA Today
7 days ago
- Business
- USA Today
Goodyear struggles with tariff impacts, sees layoffs continuing
The Goodyear Tire & Rubber Co. has told federal regulators it expects to initiate at least 1,800 layoffs in 2025 as it wrestles with rising tariffs and the effects of inflation. About 750 of these cuts were initiated in the first half of the year, filings with the Securities and Exchange Commission show — including 80 or fewer positions based at its Akron headquarters, a Goodyear spokesperson confirmed Aug. 11. The layoffs also include roughly 900 employed and contracted jobs in South Africa. The company said during an Aug. 8 earnings call that its second-quarter results did not meet expectations. Goodyear reported an adjusted net loss of $48 million for the quarter ending June 30, down year-over-year from $48 million in adjusted net income for the second quarter of 2024. The company's reported loss per share of 17 cents for the second quarter of 2025 was 54 cents below the Zacks Consensus Estimate of a 37-cent-per-share gain. The stock has taken a hit since the quarterly earnings were announced Aug. 7 after the close of trading. As of 2:20 p.m. Aug. 12, its value had dropped $1.85 or nearly 18% over the last five days to $8.40. Tariffs, inflation impacting Goodyear finances Goodyear's annualized tariff costs equate to about $350 million, Christina Zamarro, the company's executive vice president and chief financial officer, said on an earnings call on Aug. 8. That's $50 million above the estimated $300 million in annualized tariff costs that Goodyear reported in May, when it announced results for the first quarter of 2025. For the third quarter, Zamarro said, "Inflation, tariffs and other costs are expected to be a headwind of approximately $180 million, reflecting higher costs given U.S. tariffs impacts and a global inflation rate of about 3%. This amount captures above-average increases in freight rates and transitory manufacturing costs associated with announced facility closures. We expect this amount to increase in the fourth quarter." Goodyear raised prices in the U.S. and Canada due to tariffs, company President and CEO Mark Stewart said on the call. Zamarro said Goodyear will likely "will make adjustments to our supply chain" to reduce the risk of tariffs on the company's profit and loss statement for the remainder of 2024. Goodyear has talked with multiple partners in the supply chain about participating in more trade involving the United States, Mexico and Canada under the United States-Mexico-Canada Agreement, Stewart said. Shippers of goods between the three North American countries can claim "preferential treatment" under the trade agreement, which was passed during President Donald Trump's first term, depending on how much of those goods were produced in the countries from which they are exported, according to Canada's Trade Commissioner Service. Goodyear announced 1,800 new layoffs in 2025 Aside from the 1,800 layoffs initiated in 2025, Goodyear also ended the employment of about 700 employees in the first half of 2025 "under plans initiated in prior years," the filing said. Goodyear also approved a plan in the second quarter to close a manufacturing facility in Kariega, South Africa, which includes the planned elimination of 900 employed and contracted positions, according to the SEC filing. "Approximately 2,700 associates remain to be released under all ongoing rationalization plans," the filing said. The 2,700 number includes layoffs at the South Africa facility and layoffs at a plant in Danville, Virginia, that the company announced in January, the Goodyear spokesperson said. Goodyear has about 68,000 employees, including roughly 2,500 at its Akron headquarters, the spokesperson said. Patrick Williams covers growth and development for the Akron Beacon Journal. He can be reached by email at pwilliams@ or on X, formerly known as Twitter, @pwilliamsOH. Sign up for the Beacon Journal's business and consumer newsletter, "What's The Deal?"
Yahoo
02-06-2025
- Business
- Yahoo
How do you get a ride on a Goodyear blimp?
How do you get a ride on a Goodyear blimp? It's not that easy. You can't just buy a ticket and show up at Wingfoot Lake. Blimp rides are not for sale. Goodyear Tire & Rubber Co.'s airships maintain busy schedules, providing television coverage for sports and entertainment events and making high-profile appearances. Few passengers get to take rides. 'The majority of blimp flights are reserved for Goodyear customers, by invitation for specialcircumstances or for those who purchase a blimp certificate at a charity auction,' the Akron company explains in its media kit. Akron-based Wingfoot One, christened in 2014, has provided video of the NBA Finals, World Series, Stanley Cup Finals, Daytona 500, PGA Championship and College Football Playoff National Championship. Wingfoot Two (2016) is headquartered near Fort Lauderdale, Florida, and Wingfoot Three (2018) takes flight near Los Angeles. Obviously, space is limited on blimps. The gondolas normally seat eight passengers and two pilots. Passengers need invitations, and the demand is high. Corporate partners, media members and charity auction winners are among the common recipients. Your best bet may be to win a blimp ride at a charity event. Goodyear directs the public interest in blimp flights toward nonprofit groups in the communities near its airship bases. 'Goodyear donates passenger flight certificates to charities across the U.S. to auction, which turns thepublic's interest in flights into funds that directly benefit the charities,' the company notes. Nonprofit charitable organizations can submit a request for a 'ride certificate' at Goodyear's website. The Akron company said it has helped groups raise more than $1.5 million over the past five years through auctions or raffles of blimp flights. Local history: Akron runaway balloon caused panic in sky Requests will be considered if Goodyear determines that a nonprofit group's mission and reputation are consistent with its own, and the charitable organization: ∎ Holds current Internal Revenue 501(c3) designation documentation or similar. ∎ Is willing to provide Goodyear with adequate promotional placement within its materials. ∎ Provides the required information through the request form. Groups should submit ride certificate requests about four to six months before an event date. A committee will review each request, and it could take four months to make a decision. Even if approved, the flights are dependent on good weather and other commitments, so it could take awhile to land a flight. Until that day arrives, prospective riders will just have to admire the blimp from the ground. Mark J. Price can be reached at mprice@ This article originally appeared on Akron Beacon Journal: How do you get a ride on a Goodyear blimp in Akron?
Forbes
25-03-2025
- Business
- Forbes
Equal Pay Day 2025: Lilly Ledbetter Shows One Person Can Make A Difference
Lilly Ledbetter addresses the crowd on opening night of the 2012 Democratic National Convention at ... More the Time Warner Cable Center on September 4, 2012 in Charlotte, North Carolina. (Photo by Jonathan Newton/The Washington Post via Getty Images) Lilly Ledbetter, a fair pay icon and the woman behind the Lilly Ledbetter Fair Pay Act, is an example of how an ordinary person can do extraordinary things and make a big impact. Though the Lilly Ledbetter Fair Pay Act was signed in 2009, which helped to make equal pay laws more enforceable, the story began three decades earlier. In 1979, Lilly Ledbetter was hired as one of the only women supervisors working the night shift at Goodyear Tire & Rubber Co. in Gadsden, Alabama. In 1997, after 19 years of working at the factory and just two years before she planned on retiring, Ledbetter received an anonymous note in her work mailbox. It tipped her off that she had been paid only a fraction of the salary that her male counterparts were paid doing the same job. 'My mom tells the story about how she was so devastated when she found the note and didn't know how she'd get through her shift, but she did,' says Vickie Ledbetter-Saxon, Lilly Ledbetter's daughter. 'She was such a hard worker, was loyal to her employer, and she knew she was doing a good job. It really impacted her belief system when she learned how much less she was earning than her male co-workers.' Understandably upset upon reading the note, Ledbetter put the note in her pocket and thought about it all through her 12-hour night shift. She told me for a previous Forbes story, 'Halfway through the night, it occurred to me that it was not only the wages I'd been earning that I lost out on, but it was also my contributory retirement, my 401K, my social security, because it was so much less than it should have been.' Ledbetter said when she thought of all those factors combined, she knew she had to do something about it. So started nearly a decade of Ledbetter fighting her case of being discriminated against simply because she was a woman in the court system. She won her case in court and was initially awarded more than $3 million in damages, but Goodyear appealed that decision on the account of her taking too long to file, and in 2006 her case landed all the way in the Supreme Court. Ledbetter lost her case, and she never received any money in lost wages. Ledbetter could have stopped there and simply enjoyed a quiet retirement. Instead of giving up, Ledbetter went on to push for legislation and advocate for equal pay, traveling across the country to raise the visibility of how the gender wage gap impacts us all. Ledbetter said that this was not only her story, but so many other women's and families' stories across the country. She became the face of the equal pay issue, striking a chord in America. Her conviction and perseverance paid off: Former President Obama passed The Lilly Ledbetter Fair Pay Act in 2009 with bipartisan support, which was the first bill he signed as president. Rachel Feldman, Director, Co-Writer, Producer, LILLY film When Ledbetter spoke in 2008 at the Democratic National Convention, she captured the attention of film writer, producer, and director Rachel Feldman. 'Like millions of Americans, I was watching the DNC on television with my husband, and this woman, Lilly Ledbetter—I did not know who she was at that time—got on stage talking about fair pay,' recalls Feldman. 'Here was this Alabama grandmother, with her blonde hair, her gorgeous face, and her charming Southern accent. She was mesmerizing. I had a physiological response to her. I grabbed my husband and said, 'This is a movie!'' Feldman says she is not usually attracted to biographies or real stories when making films, but that she was so compelled by Ledbetter and her story that she reached out to Ledbetter the very next day. Feldman's own grit helped bring the feature film LILLY that tells Ledbetter's story to life, and it is being released in May 2025. Through working with Ledbetter in making the film, Feldman says, 'Part of Lilly's DNA was her determination, perseverance, tenacity, and fearlessness.' Ledbetter passed away last year at 86 years old. Her legacy reminds us of the impact one person can make, and to never give up fighting for justice. Equal Pay Day falls on March 25, 2025, denoting how far into the new year women must work to be paid what men were paid the previous year. Women on average make 83 cents on the dollar for what a white, non-Hispanic man makes. Most women of color face a wider-than-average gap and need to work even longer to catch up to men's earnings. As the fight for equal pay for equal work continues, here are some lessons Ledbetter has left behind on how others can continue to push for change. The wage gap is a systemic issue and no one person can change it alone–it will take many people playing a role, and it will take culture change as well. LILLY the film clearly shows how having the right community around you is what drives change. Many people and organizations, such as the National Women's Law Center and AAUW, stood behind Ledbetter to change legislation. 'One takeaway from the film is to find your community,' says Feldman. 'Find others who feel the same way as you, even if it's two or three people. Acts of activism, both big and small, are important because it's infectious, and inspires other people to do the same.' Fair pay is not a woman's issue; it's everyone's issue. LILLY the film illustrates the role that men played in supporting Ledbetter to keep up her fight for equal pay, from her husband being by her side as she went public with her story to her lawyer Jon Goldbarb who pushed to take her case to the Supreme Court. Patricia Clarkson, the actress playing Lilly Ledbetter in the film LILLY, with director Rachel ... More Feldman. 'When I was developing the project, I told everyone from the start that this is a love story,' says Feldman. 'Lilly's activism is what she does, but it's not who she is. She is a lover, and she is in this beautiful marriage with this beautiful man, and she has a powerful connection with her attorney. Men are women's allies who defend women when there's a challenge in their life. I've been going to film festivals, and men in the audience have tears streaming down their face at the end of the movie. They thank me for making the movie. It shows the kindness of men toward women.' Ledbetter was born into poverty, but she learned hard work from her parents and took a lot of pride in going to work and being able to help provide for her family, says her daughter. 'My mom always had a lot of courage, but it wasn't until later in life that we realized she could also be a powerful public speaker,' says Ledbetter-Saxon. 'She could have been a politician. She was a lobbyist. She was so many things, and she did so much in those last 28 years after she left Goodyear that it's just mind blowing to think about what you can do even later in life. She set out to make a difference and she did. I think LILLY the movie will continue to share her story and her impact.' Ledbetter was an ordinary person whose courage, grit, and authenticity helped change the law. She reminds us to never forget the power that each of us have to contribute to change and creating the society we want to see. 'I want people to know that every one of us has a responsibility to stand up for justice,' says Feldman. 'When you see something wrong, you have to say something. Activism can be very small acts of rebelliousness and resiliency. No matter what the injustice is, no matter where we are in the world, we need to speak up. We need to not be afraid and have courage like Lilly, and to speak up because things won't change unless you do.'
NBC News
10-03-2025
- Automotive
- NBC News
Goodyear Tire's transformation plan is underway — in the sky and on the ground
AKRON, Ohio — Does the Goodyear blimp sell tires? That was one question veteran auto executive Mark Stewart had when he started as CEO of Goodyear Tire & Rubber Co. a little more than a year ago, seeking to lead a transformation plan for the quintessential American company. For a century, Goodyear Tire has used helium-filled airships to tout its brand. Stewart wanted to ensure consumers connected the blimps to the company's products and services, which it has increasingly done as Goodyear celebrates the 100-year anniversary of its first blimp, called Pilgrim, in 1925. 'The answer is yes it can, and yes it does,' Stewart told CNBC during an interview at the company's headquarters. 'It really is about using one of our most powerful marketing icon pieces, the blimp, both here as well as in Europe, to in fact sell tires.' The blimp question was an easy one to answer compared with the rest of the challenges Stewart, who has become known for transformation plans, has tackled since joining the company in January 2024. Much like automakers and related suppliers, Goodyear's business is rapidly changing with new technologies, increased competition from low-cost countries such as China and investor skepticism on whether a legacy company can transform itself to be more efficient, profitable and competitive. Goodyear's answer, which was prompted by activist investor Elliott Investment Management revealing a stake in the company in 2023, is 'Goodyear Forward' — a two-year transformation plan that ends in December. The plan includes doubling operating income margin to 10%, enacting top-line and cost reductions of $1.5 billion, and bringing in gross proceeds of $2 billion in business asset sales. It's also reducing its debt load by $1.5 billion, net of approximately $1.1 billion for restructuring. To assist, the company is investing in and deploying artificial intelligence technologies and 3D-printing for things such as tread teeth, as well as using simulation to speed development and production of its products. Roughly halfway through the initial plan, Stewart said Goodyear is ahead of schedule for its benchmarks, including upping the cuts by $200 million. But investors remain skeptical amid geopolitical uncertainty such as tariffs and a disbelief in the longevity, or 'stickiness' in tire terminology, of the changes. Stewart believes Goodyear is at a 'show me' period with investors, which he plans to continue to deliver on as the company has reported five consecutive quarters of margin growth and its best retail performance in more than 20 years. 'We're continuing to execute, and I think we're doing a better job of communicating in terms of our single and double hit wins as we go through the Goodyear Forward, and structurally changing the business,' said Stewart, whose father worked at an Alabama plant for Goodyear's recently sold Dunlop brand. 'It's continuing to stack those up.' Shares of Goodyear received a 17% boost after the company reported its 2024 and fourth-quarter results. But shares of the company are down 30.3% since the plan's announcement, and 33.4% since Stewart became CEO. A spokesperson for Elliott, which has taken board seats at companies including Southwest Airlines and eBay, declined to comment on Goodyear. Goodyear reached a cooperation agreement with Elliott, which FactSet reports retains a roughly 9% stake in the company, that included adding three directors to its board. Stewart succeeded Goodyear CEO Richard Kramer, who retired after 14 years leading the company. Goodyear blimps What started out as a new emerging aeronautics business for Goodyear in 1910 has grown into a cultural icon as the company's Goodyear blimps have flown over major sporting events and historical landmarks. The first Goodyear blimp, called Pilgrim, took flight in 1925 from a hangar the company continues to use near Akron, Ohio. Goodyear has built more than 300 blimps, also known as airships, including over 200 for the U.S. Navy to patrol oceans during World War II. There have been five major generation changes of the blimps, according to Gerald Hissem, a chief pilot who has flown Goodyear blimps for 27 years. 'The technology really has advanced,' he told CNBC during a tour of the company's hangar in Ohio. 'It's totally different flying.' Today's airship debuted in 2014 and feature a 'fly-by-wire' system that eliminate many physical parts, according to Hissem. They were designed by Zeppelin Luftschifftechnik GmbH in Germany to Goodyear's specifications, followed by a joint team constructing them in the U.S. The blimps are powered by three four-cylinder engines — left, right and back — that are each capable of 200 horsepower. They can travel at speeds of up to 73 miles per hour. Other blimp facts include: Airship bases: Pompano Beach, Florida; Carson, California; Suffield, Ohio; and Essen, Germany. Names: America, Columbia, Defender, Eagle, Enterprise, Europa, Mayflower, Pilgrim, Rainbow, Ranger, Reliance, Resolute, Spirit of Akron, Spirit of Goodyear, Volunteer. Longest flight? In March 1957, an airship called Snow Bird went 11 consecutive days in flight. It flew from Weymouth, Massachusetts, to Europe, Africa and Key West, Florida, without refueling or landing. Want to ride? Goodyear's current blimps have a bathroom, room for two pilots and typically six to eight passengers. To be a blimp passenger is by invitation only, but the company also donates 'ride certificates,' largely for nonprofit causes. 'Forward' progress Goodyear is well on its way to achieving its plan, but its success is not guaranteed. In addition to achieving its own targets, it's unclear how changing regulations such as President Donald Trump 's tariffs will impact the tire company's business. Stewart, prior to the implementation and then delay of 25% tariffs on Canada and Mexico for automakers and suppliers, declined to go into detail on Goodyear's preparation and potential contingency plans for such tariffs on North American operations as well as other countries. 'We're running all the scenarios with that right now,' Stewart said. 'And bottom line is we'll continue to add projects into Goodyear Forward to keep marching on our journey.' Goodyear has built up an international business from its humble beginnings 127 years ago in Akron, Ohio. The company employs about 68,000 people and manufactures its products in 53 facilities in 20 countries, with major operations in North and South America, Asia-Pacific and Europe. Its manufacturing operations in the Americas, which represented roughly half of its tire sales in 2024, include making tires in eight plants in the U.S., two plants in both Canada and Mexico and a plant each in Brazil, Chile, Colombia and Peru. The Goodyear Forward plan reaches across the operations, aiming to achieve the goals through a mix of cost cutting, headcount reductions and making the business more efficient through new processes and technologies. In addition to those targets, Stewart also has set priorities to re-establish focus on its retail business, increase fleet business, including telematics, and ink high-profile business deals such as Goodyear's first launch in decades on a Ferrari sports car. 'Goodyear Forward is just getting embedded into our DNA,' Stewart said. 'What's next for us is we are going to get aggressive about growth in retail and service. We are getting aggressive in growth in the high-end [tires].' Evolving business Tires — Goodyear's main business — seem simple. Rubber is made into different shapes and treads, put on wheels and then put on a vehicle. They're literally where the rubber meets the road. But the process, material chemistry and production of tires continue to evolve. Goodyear has expanded its top-tier products to include massive tires for off-road vehicles such as the Jeep Wrangler and Ford Bronco, as well as the Tesla Cybertruck and large SUVs that feature 22-inch or 24-inch wheels such as the Cadillac Escalade. Such businesses are highly profitable for the company, which is investing an unspecified amount into a facility in Oklahoma to expand production by 10 million units annually and modernize the plant. 'We will ensure we're running at the optimal level of output and efficiency, and we're running the products that will yield the highest opportunities for profitability this year,' Stewart said last month on the company's quarterly call. In Asia–Pacific, where its newest plants are located, the company has been able to capitalize faster on such business. It increased its segment operating income by 37% last year to $277 million, with an operating margin of 11.4% — a juxtaposition from Western automakers with escalading problems in the region, specifically China. While its Asia–Pacific business is a tailwind at the moment, products from competitors and nearby nations are not. Similarly to how Chinese automakers have expanded outside their own country, tire manufacturers such as Sumitomo and Yokohama have been increasingly exporting products. Tires from that region have undercut Goodyear, as companies rushed to purchase them ahead of potential tariffs. Low-end imports outperformed the U.S. industry last year and grew 11%, CFO Christina Zamarro said during the company's quarterly earnings call. The company said low-cost imported tires are largely sourced from Southeast Asia, including from a number of countries that are either not subject to antidumping or countervailing duty tariffs. 'As we look at the top line this past year, we've seen growth in the low-end imports impacting the consumer replacement industry in the U.S., Europe, as well Brazil,' Stewart told investors. 'The inflows at the low-end of the market over the last two years are unprecedented.' Goodyear's the last major U.S. tire company: Its largest competitors globally are France-based Michelin; Bridgestone Corp., which is a subsidiary of a Japanese-based company; and German-based Continental. From wooden floors to tireless testing At Goodyear's headquarters, three floors of a historic building for the company that was built in 1916 continue to produce racing tires, most notably for NHRA professional classes and the top three series for NASCAR. The processes in this facility are traditional, with a lot of human interaction compared to newer plants with more automation like the company has at facilities in Luxembourg and China, and is expanding to the U.S. Down the road from the factory, which features wood floors similar to those in the factory in Detroit where Henry Ford started building the Model T in 1900s, is a different Goodyear. Walking into the nondescript building in the shadow of the headquarters is a glimpse into the future Stewart wants for the company. In the building is Goodyear's simulation machine, a multimillion investment that promises to cut research and development costs and time, while improving product profits. To be clear, no actual tires are used in the simulator and the 'vehicle' cockpits — a hatchback and a pickup truck — are held up by hydraulics, surround by 270 degrees of screens. 'The goal is to be able to evaluate and test tire designs and theories virtually before ever having to spend the money to build a mold or build the tire,' said Patrick Renz, a senior engineer at Goodyear. 'We're really using this now to win [automaker business].' Goodyear has worked with many of the major automakers on such virtual development, including Ferrari, according to Renz. He said the earlier in the development Goodyear can work with a company, the more impactful the virtual testing can be. Mahesh Kavaturu, Goodyear senior director of global performance and simulation technology, said such simulations, as well as AI, aim to transform Goodyear's processes. 'We actually have a lot of capabilities on physical tire testing, and now we are getting into artificial intelligence, machine learning,' he told CNBC in the company's 'Innovation Center' that includes conceptual and unique products made by the company such as airless tires. 'In Goodyear, [AI] is not a buzz word.' On Wall Street, hype is building for Goodyear, but many investors remain on the sidelines waiting to see if the company's recent efforts under Goodyear Forward can be ingrained in the company as much as its blimps. Goodyear's stock is rated overweight with a target price of $11.47 a share, according to nine analysts compiled by FactSet. 'The company has reported inconsistent levels of profit growth over the past several years. But, we believe that an inflection point developed with the reporting of fourth quarter 2024 results, which were much better than we expected,' Argus analyst Bill Selesky said in a Feb. 14 investor note upgrading Goodyear to buy.
