Updated: Mark Stewart to lead Goodyear moving 'Forward'

AKRON—Mark Stewart, chief operating officer for North America for Stellantis, has been appointed as the next chief executive officer to lead Goodyear.

Stewart, who officially takes the top post at the world’s third-largest tire maker Jan. 29, replaces long-time Goodyear executive Rich Kramer, who announced his retirement in 2023 after 24 years with the company, 14 of those as CEO, chairman and president.

Kramer will remain with Goodyear in an advisory capacity.

“Following an ongoing and active succession planning process culminating in a comprehensive search, the Board is confident Mark is the ideal CEO for Goodyear as we continue executing against the Goodyear Forward plan,” said Laurette T. Koellner, independent lead director of Goodyear’s Board of Directors, in a Jan. 18 statement.

Koellner, formerly with The Boeing Co., will transition to non-executive Board chairperson Jan. 29.

“Mark is a seasoned automotive executive and proven operator with a track record of driving innovation and commercial excellence,” she continued. “He brings the perfect mix of international experience, history of successfully managing through business cycles and operational expertise, with a deep commitment to building strong, diverse and inclusive teams. 

“We are pleased to welcome a leader of his caliber as we focus on our transformation plan to deliver profitable growth and long-term shareholder value.”

Stewart has led Stellantis’ North America segment since the formation of the car manufacturing company through the $52 billion Fiat Chrysler and Peugeot merger in 2021.

He is credited with leading the company’s transition to EVs, an evolution that he will be expected to lead at Goodyear as well.

During his tenure, he oversaw the release of the first electrified Jeep in the U.S. market, which remains the No. 1 selling plug-in hybrid EV for three years running. 

“Under his leadership, the region enjoyed significant, industry-leading increases in both margin and cash flow, despite the semiconductor shortage and a hyper-competitive U.S. market,” Goodyear said Jan. 18.

Prior to his work at Stellantis, Stewart oversaw more than 200 facilities as vice president for customer fulfillment at Amazon, a role he was appointed to in 2017.

There, he led operations, procurement, construction and engineering and teams “dedicated to pursuing automation, artificial intelligence, advanced robotics and conveyance.”

Prior to Amazon, Stewart from 2006 to 2017 served in executive roles at TRW Automotive Inc., culminating in his appointment as executive vice president and COO in 2015.

He has worked in manufacturing and fulfillment operations across the globe throughout his career, and has been based in the U.S., Belgium, Germany and China.

A native of Madison, Ala., Stewart earned an MBA from The University of Tennessee-Knoxville and a BE in electrical and electronics engineering from Vanderbilt University.

“I am honored and humbled to join Goodyear at such a pivotal time in its history,” Stewart said Jan. 18. “I have deep respect and admiration for everything Rich and the Goodyear team have accomplished together. Goodyear is an iconic company with an unmatched brand, industry-leading innovation and significant opportunity for growth.”

Kramer said Stewart is the right leader at the right time for the tire maker in transition.

“It has been an honor and privilege to lead this great company during my 14 years as CEO,” Kramer said. “I am proud of Goodyear’s progress and am forever grateful to our associates, our customers and our partners, without whom none of our achievements would have been possible. 

“I look forward to working with Mark through the transition.”

Kramer led Goodyear’s 2021 acquisition of Cooper Tire & Rubber Co., a $2.15 billion deal that combined the world’s third and 13th largest tire makers. 

He also played a key role in keeping the tire maker in Akron, as the company in 2011 launched a project that led to Goodyear’s new global headquarters in the city.

Koellner added her appreciation for Kramer’s “unwavering dedication to Goodyear.”

“This commitment ... is evidenced by the continued advancement of our business models and creation of clear competitive advantages over the last couple of years, as well as leading our strategic and operational review to set the company up for future success,” she said.

The North American segment at Stellantis for which Stewart was responsible has more than 88,000 employees and more than $90 billion in revenue. It goes to market with such brands as Chrysler, Maserati and Alfa Romeo.

For its part, the Milan, Italy-based car maker has appointed Carlos Zarlenga as the new COO for North America.
Stellantis said Zarlenga will look to leverage “further improvements” in its performance in the region.

Group CEO Carlos Tavares thanked Stewart and wished him “the best in his new position” in a Jan. 16 statement released by Stellantis. 

“In the very demanding North American market with many obstacles to overcome in order to foster the performance of the company, Carlos Zarlenga is the best leader among our talent pool to replace Mark Stewart and to drive the change in our business model towards electrification in the region,” Tavares said.

Stewart takes the reins at Goodyear during a period of major transition for the Akron company, which celebrated its 125th anniversary in August.

Goodyear in January 2023 said it planned to trim its global salaried work force by about 5 percent, or 500 jobs, by mid-year, citing an uncertain near-term economic outlook and weaker industry conditions.

As financial clouds continued to darken throughout last year,  Elliott Investment Management L.P., a Florida-based investment firm with $55 billion in assets, sent a letter on May 11 to Kramer and the company’s board of directors. 

The owner of 10 percent of Goodyear’s publicly traded stock detailed reasons for what it called the tire maker’s poor stock performance while outlining steps it said the company should take to “reverse a period of negative performance,” including:
appointing five new “highly qualified” individuals to its board to improve governance and spearhead change;
divesting its corporate retail stores and use the proceeds to pay down its debt and improve its financial flexibility; and
forming an operational review committee to develop an operational and development plan.

As a result, the company at the end of last year announced its Goodyear Forward plan.

“I am confident that Goodyear Forward is the right strategy to unlock the company’s full potential in its next chapter,” Stewart said. “I look forward to working alongside the talented team around the globe as we drive sustainable and substantial value together.”

First and foremost as part of the plan, Goodyear will look for buyers for its chemicals/synthetic rubber, off-the-road tire and Dunlop brand businesses.

That will be key as the tire firm expects to bring in $2 billion from the sales of these units as it looks to double its profit margin by 2024 and be a far less-leveraged company.

Goodyear derives about $700 million in annual sales for the Dunlop brand, selling about 7 million units a year. 
About 5 million of those are sold in its Europe, Middle East and Africa unit, and another 500,000 in commercial truck, according to Goodyear Chief Financial Officer Christina Zamarro.

The chemicals business brings in roughly $1 billion in annual revenue, with half of that to internal customers within Goodyear and the rest on the open market. 

It produces polybutadiene rubber, SSBR, ESBR and IR elastomers, along with dicyclopentadiene, antioxidants and other specialty chemicals.

But Goodyear also will be looking to improve the businesses it does keep as part of Goodyear Forward, including some that were thought to be assets that would land on the selling block, such as its retail and aircraft tire units.

Two of Goodyear’s longer-tenured executives—Stephen R. McClellan, president, Americas, and Darren R. Wells, executive vice president and chief administrative officer—are planning to retire in 2024 after nearly 56 combined years with the company.

These retirements were announced Jan. 17.

McClellan, who has been with the company for 36 years, is retiring on Feb. 29, while Wells, who has spent nearly two decades at Goodyear, will retire effective April 1.

Both announcements were made in filings with the U.S. Securities and Exchange Commission.

McClellan has been president of the Americas for eight years. Prior to that, he was president of North America for five years (2011-2016); president of the North America Tire Consumer Business for three years (2008-11); and president of the North America Tire Commercial Business unit (2003-2008).

McClellan, a University of Akron graduate, joined the company in 1988 and worked in various position until 2003.

Wells, a graduate of DePauw University, was named chief administrative officer in January 2023. Prior to that, he was chief financial officer since October 2018.