General Tyre Morocco files for insolvency

CASABLANCA, Morocco (Sept. 5)—Moroccan tire maker General Tyre Morocco has filed for insolvency after a restructuring plan failed to produce a turnaround for the money-losing operation. The company, 34.2-percent owned by Germany's Continental A.G., blamed a drop in tariffs on tires and a subsequent rise in imports for its problems. The firm has not produced any tires since December, when workers went on strike and its stock was suspended from trading on the Casablanca stock exchange. General Tyre Morocco reported a loss of $5.4 million for the January-July period, following a $4.7 million loss in fiscal 2000. Founded in 1958 as a subsidiary of General Tire & Rubber Co., the firm employed 700 at its peak. General Tyre Morocco reported sales of $35.7 million last year, down more than 20 percent from 1999 figures.