Goodyear to Exit Segments of Private-Label Tire Business

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oodyear Tire & Rubber Co. said Wednesday it is withdrawing from certain segments of its private-label tire business in North America.

Keith Price, a Goodyear spokesman, told Transport Topics the production cuts only apply to automobile tires and will not affect the company's output for heavy-duty trucks.

In April, the company said it was expanding its Dunlop brand to heavy truck tires. (Click here for previous coverage.)

The action affects about 10 private label brands manufactured by Goodyear and sold by a small number of wholesale customers to tire retailers, the company said.

Last year, this segment of the private-label business represented about $300 million in sales and about 8 million units manufactured in five North American plants — or about one-third of Goodyear’s private label position overall.

“Today's announcement is part of our continuing strategy to focus selectively on the more profitable segments of the business,” said Jonathan Rich, president of Goodyear’s North American Tire business.” Our intention is to build upon the market strength we have established in our branded and retailer-specific product lines."

Over the next 12 months, Rich said the company will work with customers to help them transition to alternative Goodyear products or other sources of supply. The decision will require a corresponding reduction in Goodyear's tire manufacturing capacity in North America, he said in a statement.