AKRON (Aug. 4) — Goodyear Chairman and CEO Robert Keegan said he will seek to cut "more than $1 billion" by 2008 as he expanded the previous cost-cutting goal of $750 million to $1 billion.
During a conference call with analysts discussing second quarter results, Keegan said the increased cost cuts will come from areas already being trimmed. Specifically, he indicated continuous improvement such as productivity and lean manufacturing, Goodyear´s global high cost manufacturing footprint, Asian sourcing and selling, administrative and general costs.
Goodyear expects to save $350 million to $450 million in continuous improvement; $100 million to $150 million in footprint reduction; $150 million to $200 million from Asian sourcing; and $150 million to $200 million from SAG costs.
"Frankly, our culture has recognized the need here to be aggressive on costs," Keegan told analysts.