Official Goodyear statement:
Goodyear today announced plans to close its Union City, Tenn., tire manufacturing facility by the end of 2011 as part of its strategy to reduce high-cost manufacturing capacity globally and provide cost effective high-value-added products that the market is demanding while continuing to make high quality products for its customers.
"While we are committed to manufacturing in North America, all of our plants must be cost competitive and be able to demonstrate sustainable world-class productivity. That is not the case with this plant, and as a result, the market has moved beyond what the factory is able to build," said [Richard J. Kramer, chairman and chief executive officer].
This closure, when complete, will eliminate approximately 12 million units of available capacity and is the final action in plans announced in 2009 to eliminate 15 million to 25 million units of high-cost capacity globally. This action is expected to provide annual cost savings of approximately $80 million. The Union City plant currently employs approximately 1,900 associates.
The announcement came in Goodyear's 4th quarter 2010 earnings report, which stated a net loss of $177 million on revenues of $5.1 billion. The company reported a net loss of $216 million on sales of $18.8 billion for the year. According to the report, the total after-tax restructuring, accelerated depreciation and asset write-off charges for closure will be approx. $270 million, which includes approx. $140 million in cash charges.
Goodyear's other U.S. manufacturing facilities are located at Akron OH, Gadsden AL, Buffalo NY, Topeka KS, Danville VA and Fayetteville NC.
Union City is a small town in Northwest Tennessee with a population of about 11,000. The largest employer is Goodyear, which opened there in 1969.
- That's no way to treat a constituent (1 reply)
- Daily Show: Third world health care in Knoxville (8 replies)
- Shoulda got Moxley (77 replies)
- Fulton Lady Falcons win at state quarterfinals, 67-49 over Cannon County (5 replies)
- The 5 National Parks Hardest Hit by the Government Shutdown (1 reply)
- FINAL CALL! Stop the State Power Grab- NO Changes to the Right to Farm Act! (17 replies)
- Herr Huffman-Rhee on TEA (and 'Faux' Parents) (4 replies)
- Shame on you Gov. Haslam (14 replies)
- What's the deal with switchblades? (27 replies)
- Keep Knoxville Beautiful: Nominate a location to be beautified (7 replies)
- RIP Bobby Drinnon (8 replies)
- U.S. Senate candidate Terry Adams blasts Alexander on veteran votes (6 replies)
- Mar 8 2014 - 6:30pm (20 hours 34 min from now)
- Mar 20 2014 - 7:00pm (1 week 5 days from now)