Goodyear Considers Restructuring, Journal Says

Goodyear Tire & Rubber Co. is considering restructuring options including plant closings, moving work overseas and laying off workers, the Wall Street Journal reported Friday.

Company officials told the paper that no action was planned immediately and that any restructuring would be part of a larger corporate strategy to improve cost controls and productivity increases.

Goodyear’s three-year union labor contract, which runs through July 2006, allows it to release up to 15% of its workers in North America, the Journal said.

One option the company was considering was dropping its “private-label tires,” those made for specific retailers and aimed at competing against lower-priced imports, the paper said.

The company has long said it would consider shifting production to lower-cost countries such as China or Brazil, the Journal said.

Goodyear reported third-quarter income of $36.5 million, its second consecutive profit, compared with a $119.4 million loss the previous third quarter.

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