• A recession arrives, causing havoc throughout the industry and leading to layoffs of white- and blue-collar workers.
• Unions do their best to protect their workers, but the URW itself lays off 33 staff members.
• Raw material costs rise rapidly. Natural rubber pricing rises 35 percent even as supply outpaces declining demand.
• NHTSA orders Uniroyal to recall 2 million PR5 and PR6 tires, the second largest tire recall at that point.
• A group of investors plan to revive a Mansfield Tire plant in Tupelo, Miss., but it never comes to fruition.
• BFG exits original equipment business.
• American Biltrite sells its Boston Industrial Products Division to Dana Corp.
• Goodrich discloses plans to divest some businesses and reroute capital to PVC and other sectors, marking the start of BFG's exit from the rubber business.
• Worst recession since the Great Depression hits the industry, forcing layoffs, plant closures and corporate repositioning.
• URW returns to bargaining table and comes away with agreements that include no pay raises and preservation of cost-of-living allowance benefits. For the first time in seven years, there are no strikes at a major tire maker.
• Bridgestone buys Firestone's LaVergne, Tenn., tire plant, establishing its first U.S. footprint.
• General Tire begins making Continental Tires in the U.S.
• General Tire closes last major factory in Akron and shutters seven retread facilities.
• Firestone closes eight plants as Nevin continues to prepare the company for sale.
• Dayco Corp. spends much of the year sorting out a scandal involving millions of false orders.
• Columbian Chemicals leaves the synthetic rubber business, selling its butyl rubber plant to Polysar.
• Tire makers are growing, unveiling plans for 11 expansion projects.
• Jasper Rubber Products and J.L. Schroth announce expansion plans.
• Shell adds a Kraton thermoplastic elastomer plant in Ohio.
• Polysar opens a butyl facility in Ontario.
• NHTSA suspends treadwear ratings of UTQG.
• PMA threatens to take Environmental Protection Agency to court over MOCA.
• Goodyear acquires gas transmission company Celeron Corp. for $782 million.
• Goodyear expands four plants in the U.S., while importing from its Brazilian subsidiary.
• Dunlop, Cooper, Armstrong and Bridgestone launch expansion projects.
• Non-tire companies launching expansions include Moxness, Patch Rubber Co., Dayco, Hydril Corp., Plumley and Carlisle.
• Mohawk Rubber is acquired twice, ending up with Danaher Corp.
• Firestone decides to focus on tires and sells off a number of businesses.
• Parker Hannifin Corp. buys two Uniroyal hose factories.
• CR industries acquires Colt Industries' Garlock Oil Seal Division.
• General Tire becomes GenCorp Inc.