AMIENS, France (Jan. 24, 2008) — Goodyear said it will cut production and eliminate as many as 500 jobs at two tire plants in Amiens because the factories are not cost competitive.
The company´s action follows the rejection last October by the plants´ employees of a restructuring plan, Goodyear said. The facilities employ 2,700.
Goodyear has explained to the trade unions the need for the changes to make the plants competitive, so the company had no choice but to reduce its costs, said Serge Lussier, Goodyear vice president of manufacturing for Europe, Middle East and Africa. He said the proposal the tire company presented called for an investment of about $75 million in the two plants to make them more competitive, particularly in making high-performance tires.
The plan will require a new work pattern, involving four rotating crews working eight-hour shifts, including weekends. The plants will run for 350 days a year.
Goodyear said it will transfer the production of some tires impacted by the move to other, lower-cost factories in Europe and elsewhere, and some products will be eliminated.
Labor representatives at the plants had not commented on the matter as of mid-day on Jan. 24.