New Goodyear boss to centre focus on rationalisation plan

Akron, Ohio – Goodyear Tire & Rubber’s new CEO Mark Stewart has set out the details of his upcoming activities, as he takes over the leadership of the US tire major.

In an annual earnings call 13 Feb, Stewart, who joined Goodyear from automotive giant Stellantis, said he would bring a “perspective from automotive OEM and automotive supplier background” to the group.

“You can expect me to focus heavily on Goodyear's manufacturing operations and distribution, understanding it on every level, and working with the team to enhance capability and our cost effectiveness,” he said.

Furthermore, Stewart said he would focus on “clean sheeting and share cost activities, our SKU or product complexity, as well as our go-to-market strategies.”

These activities, the new CEO said, will be centred around the ‘Goodyear Forward” plan, which was unveiled in November last year, with the aim to deliver “cost reduction” of $1 billion (€920,000) by the end of 2025. (ERJ report)

“It's about maximising our strength and our market position in North America, improving our cost structure as well as derisking our balance sheet,” he added.

Goodyear is aiming to achieve $350 million of the targeted cuts by the end of 2024, and the remaining $750 million in 2025.

For the first quarter of the year, the tire maker expects to achieve cuts of $50 million and a “big step up” in the second quarter to ‘level the rest of the year’, said finance chief Christina Zamarro during the earnings call.

As part of the strategy, the processes related to the sales of three major assets – chemicals, Dunlop brand and off-road tire businesses – are underway and progressing as planned, Zamarro added.