Goodyear unveils growth plan

AKRON, Ohio (Feb. 11)—Goodyear´s North American Tire division likely will make more cost-cutting moves and initiate more efficient measures to improve the firm´s sagging financial fortunes. Jon D. Rich, president of the division, on Feb. 10 unveiled a four-point program to dealers in Orlando, Fla., that calls for stabilizing Goodyear through cost-cutting initiatives; simplifying its overall structure; executing a variety of projects that will create greater efficiency; and improving his tire pricing structures. Rich wants to double the number of tires Goodyear currently imports and fix or close North American plants that aren´t competitive. Goodyear hopes to simplify its business by splitting the North American Tire division into three profit centers: consumer, commercial and off-the-road tires. It expects to improve its execution by utilizing Six Sigma business practices, which Rich maintained could result in annual savings of $200 million. In terms of sales growth, Rich said first and foremost Goodyear must bring stability to its tire pricing structure.