Speaker projects Goodyear will need Ch. 11 to beat financial woes

HILTON HEAD, S.C. (Feb. 27)—A professor from the University of Akron is the latest tire industry observer to project that Goodyear will be unable to escape its current financial problems without seeking Chapter 11 bankruptcy protection. "I see very little reason for optimism; I think they will go belly-up," said Dennis Byrne, a UA professor emeritus of economics, speaking Feb. 26 at the Clemson University Tire Industry Conference in Hilton Head. "I don't think they will disappear. It will be some type of reorganization. They're in for a tough time." Byrne said Goodyear faces a number of problems that all came together at one time to force the situation in which the tire and rubber company now finds itself. Those negatives, he said, include product mix and prices; advertising and product awareness; rising levels of debt and interest costs; imprecise forecasts; poor employee morale; dealer problems; and cost structure.