1 Mar 2024
Production cuts at many facilities in 2023 to address “softening industry demand and prevent the buildup of excess inventory...”
Akron, Ohio – Goodyear Tire & Rubber has seen its globally tire capacity utilisation rate drop to 81% for 2023, down from 89% in 2022 and 87% in 2021.
In its annual results SEC filing 13 Feb, the group linked the lower utilisation rate to the impact of a storm on production at its plant in Tupelo, Mississippi (ERJ report) as well as cuts in production globally.
Goodyear said it reduced production at many of its facilities during 2023 in order to “address softening industry demand and prevent the buildup of excess inventory.”
This resulted in a reduction of 14.2 million units, or a 6.1% decrease, compared to production in 2022, primarily in Americas and EMEA.
Goodyear operates 28 manufacturing facilities in Americas, 17 sites in Europe, and 10 plants in Asia Pacific.
The Akron tire maker's statement did not include a breakdown of utilisation rates across various regions.
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