Goodyear to combine North American, Latin American units

AKRON—Goodyear will combine its North America and Latin America businesses into one Americas business unit, effective Jan. 1.

The tire maker said the combined business will serve customers and consumers more effectively and efficiently by integrating product development, market forecasting and product supply, among other processes.

All manufacturing plants in the combined region, including the new plant under construction in San Luis Potosi, Mexico, which is scheduled to open in 2017, will serve all customers in Mexico, Latin America and North America, according to the company, giving Goodyear greater flexibility to anticipate and react to market changes.

Stephen R. McClellan, currently president of Goodyear's North America business, will head the Americas business. Marcelo Toscani, vice president of global manufacturing, will serve as president of the company's Latin America operations and report to McClellan.

“While the two former regions approach their markets differently, there also are many increasing similarities, especially the growth of high-value-added tires,” Richard J. Kramer, Goodyear chairman and CEO, said in a statement. “This new organization is structured to accelerate growth and maximize earnings over time through simplicity, speed, and an intense focus on our customers and markets.”

Kramer said the single unit “will allow us to become a better partner and supplier to customers and consumers. We are excited about the opportunities to operate more efficiently and better manage the increasing complexity of the tire industry. This will enhance our ability to deliver more of our high-value-added tires to the customers and consumers who are demanding them most.”

McClellan, 50, has spent his career at Goodyear since joining the company in 1988. He has been president of the company's North America business since 2011. Prior to that, he served as president of the North American consumer tire business, led the North American commercial truck tire business, and served in other management roles in finance, sales and distribution.

“Steve is a seasoned leader who has consistently executed our strategy, delivering record results and putting the North America business on a path to sustained growth. He is perfectly suited to lead our Americas business,” Kramer said.

Toscani, 57, is a native of Argentina, Goodyear said, with experience in marketing, manufacturing, and general management in several Latin American countries. In addition to his global operations role, Toscani has held leadership positions in Brazil and China during more than 30 years at Goodyear.

In addition, Jean-Claude Kihn has been named president of Goodyear's Europe, Middle East and Africa business. Currently the president of Goodyear's Latin America business, Kihn will assume his new role on Jan. 1, succeeding Darren R. Wells, who will leave the company in early 2016.

“Jean-Claude is a well-rounded executive with leadership experience in all of our regions and every aspect of our operations,” Kramer said. “As Goodyear's chief technical officer, he led our technology and innovation progress and was responsible for research, development, engineering, and quality worldwide.”

Kihn, 56, joined Goodyear in 1988 as an engineer in the company's technical center in his native Luxembourg. A member of Goodyear's senior leadership team since 2008, he has served as chief technical officer, senior vice president and managing director of Goodyear Brazil, and most recently, president of the company's Latin America business unit.

“We deeply appreciate everything Darren Wells has done for Goodyear during his 13 years with the company,” Kramer said. “First as treasurer and later as CFO, Darren led numerous initiatives that were critical to the company's turnaround and ensuring its long-term financial health. As president of EMEA, he laid the groundwork for future success in the region.”

Goodyear, ranked as the third-largest tire maker in the world by Rubber & Plastics News, employs approximately 66,000 and manufactures its products in 49 facilities in 22 countries.