Goodyear Tire and Rubber Company

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The Goodyear Tire & Rubber Company
Type Public (NYSE: GT)
Founded Akron, Ohio (1898)
Headquarters Flag of the United States 1144 East Market Street, Akron, Ohio 44316
Phone: 330-796-2121
Fax: 330-796-2222
Key people Robert Keegan, CEO
Industry Manufacturing
Products Tires
Revenue ▲ US$19.7 billion (2005)
Employees 145,000
Website www.goodyear.com

The Goodyear Tire & Rubber Company was founded in 1898 by Frank Seiberling. Today it is the third largest tire company in the world after Bridgestone and Michelin. Goodyear manufactures tires for automobiles, commercial trucks, race cars, airplanes, and heavy earth-mover machinery.

Although the company was not connected with him, it was named in honor of Charles Goodyear. Goodyear invented vulcanized rubber in 1839. The first Goodyear Tires became popular because they were easily detachable and low maintenance.

Goodyear is famous throughout the world because of the Goodyear blimp. The blimp came from Goodyear's attempts to enter the Aircraft and Aerospace industries after World War II. Today it is one of the most recognizable advertising icons in America. It is a former component of the Dow Jones Industrial Average.[1]

The famous Goodyear blimp
The famous Goodyear blimp

Contents

[edit] History

[edit] Early History 1898-1926

The first Goodyear factory opened in Akron Ohio in 1898. The thirteen original employees manufactured bicycle and carriage tires, rubber horseshoe pads, and poker chips. The company grew with the advent of the automobile.

In 1901 Frank Seiberling provided Henry Ford with racing tires. By 1908 Ford was outfitting his Model T with Goodyear tires. A year later Goodyear manufactured its first aircraft tire.

In 1911 Goodyear started experimenting with airship design. It later manufactured airships and balloons for the U.S. military during World War I. The transport and reconnaissance capabilities that Goodyear provided contributed significantly to the Allied victory.

By 1926 Goodyear was the largest rubber company in the world. Only four years earlier they were forced to temporarily cease race tire production due to competition. Nevertheless, the popularity of the Goodyear tire on the racing circuit led to a popular demand for the brand.

[edit] Expansion 1926-1990

For the next sixty years Goodyear grew to become a multinational corporation with multi-billion dollar earnings. It acquired their rival Kelly-Springfield Tire in 1935. During World War II Goodyear manufactured Corsair fighter planes for the U.S. Military. By 1956 they owned and operated a nuclear processing plant in Ohio.

In 1944 entered to Mexico in Joint-Venture with Cia. Hulera "El Oxo", S.A. de C.V., therefore the company is "Goodyear Oxo"

Sales for 1969 topped $3 billion, five years later sales topped $5 billion and it boasted operations in thirty four countries. In 1978 the original Akron plant was converted into a Technical Center for research and design. By 1985 worldwide sales exceeded $10 billion dollars.

Goodyear's crown jewel was the Goodyear Aerospace Corporation, a holding that developed from the Goodyear Aircraft Company after World War II. In 1979 they designed a supercomputer for NASA's Goddard Spaceflight Center, the MPP. The subsidiary was sold in 1987 to the Loral Corp. as a result of restructuring.

[edit] The Goldsmith affair

In 1986 The Goodyear Rubber & Tire Company was a victim of a Greenmail attack. British financier James Goldsmith in conjunction with the investment group Hanson purchased 11% of Goodyear stock. They threatened to take the company over unless Goodyear bought back the shares at a highly inflated price.

The following year Goodyear retaliated with a massive restructuring. The company sold subsidiaries, closed plants, and tried to damage itself financially to make it an unsuitable takeover target. The plan worked and Goldsmith reportedly walked away with $90 million for his efforts.

[edit] 1990 to Present

The last major restructuring of the company took place in 1991. Goodyear hired Stanley Gault, former CFO of Rubbermaid inc, to expand the company into new markets. The moves resulted in 12,000 employees being laid off.

Edmonton, Alberta
Edmonton, Alberta

[edit] Recent History

On October 5, 2006 the United Steelworkers Union voted to strike at a Goodyear plant in Kansas. The strike was called over a dispute about higher health care costs and the closing of a non-unionised plant in Texas. The strike lasted until January 2, 2007, and cost the company approximately $358 million. The US Army briefly considered invoking a clause in Taft-Hartley Act to force the employees back to work. Humvee tires are produced at the Kansas plant and there was concern that the strike would create a shortage had it continued longer than it did.

On December 7, 2007 Goodyear announced that it has decided to keep its world headquarters in Akron, Ohio, keeping 3,000 Goodyear jobs and 500 contractor positions in Akron.

On March 9, 2008 following the Kolbalt Tools 500 at Atlanta Motor Speedway, NASCAR Sprint Cup driver Tony Stewart blasted Goodyear Tires, remarking that NASCAR should stop using Goodyear Tires in their Stock Car series. His main statement was that "Goodyear does not give a crap about tire quality".

On June 11, 2008, employee Gloria McInnis was killed and six others were injured after an explosion and ammonia release at a Goodyear plant in Houston, Texas.[2][3]

[edit] Timeline

  • 1898 — Goodyear Founded
  • 1901 — Seiberling makes racing tires for Henry Ford
  • 1908 — Ford's Model T is outfitted with Goodyear tires
  • 1909 — 1st aircraft tire
  • 1911 — 1st airship envelope
  • 1917 — made airships & balloons for the U.S. military during World War I
  • 1919 — tires on the winning car at the Indianapolis 500
  • 1925 — first blimp, Pilgrim is launched
  • 1926 — world's largest rubber company
  • 1935 — acquired Kelly-Springfield Tire
  • 1956 — Goodyear-operated U235 atomic processing plant opens in Ohio
  • 1958 — enters racing to counter "stodgy" image
  • 1967 — Goodyear introduces the Polyglas tire, one of the first wide-tread bias-belted fiberglass tires, which along with similar tires from competitors such as the Firestone Wide-Oval would become regular equipment on 1970 to 1974 models, which would be superseded by radial tires beginning in 1975.
  • 1969 — Stock splits two for one
  • 1974 — sales reach $5 billion
  • 1978 — Akron plant converted into Technical Center for R&D
  • 1984 — worldwide sales exceed $10 billion
  • 1986 — James Goldsmith takeover attempt
  • 1987 — massive restructuring
  • 1987 — completion of the California - Texas "All American" oil pipeline
  • 1994 — "electronic store" opened on the CompuServe network
  • 1999 — Goodyear Dunlop enters joint venture with Sumitomo Rubber
  • 2006 — end of car tire production in the UK, closure of the Washington plant
  • 2007 — Sale of the Engineered Products Division to the Carlyle Group; EPD is renamed Veyance Technologies
  • 2008 — Fatal explosion at Houston plant

[edit] Corporate Structure and Leadership

The Goodyear Tire & Rubber Company is structured into the following units:

  • Asia Pacific Region
    • Pierre E. Cohade, President
  • Eastern Europe, Middle East & Africa Business
    • Jarro F. Kaplan, President
  • European Union Business
    • Arthur de Bok, President
  • Latin American Region
    • Eduardo A. Fortunato, President
  • North American Tire
    • Richard J. Kramer, President

Current members of the board of directors of Goodyear are: James C. Boland, John G. Breen, Gary D. Forsee, William J. Hudson Jr., Steven A. Minter, Denise M. Morrison, Rodney O'Neal, Shirley D. Peterson, G. Craig Sullivan, Thomas H. Weidemeyer, Michael R. Wessel, W. Alan McCollough, and Robert J. Keegan (chairman).

Robert J. Keegan is also the chief executive officer of the company (since 2002), succeeding Samir G. Gibara.

[edit] Subsidiaries

  • Fierce
  • Lee
  • Fulda (Germany)
  • Debica (Poland)

[edit] Corporate Issues

[edit] No Firearms Policy

Recently customers have noticed a "no firearms allowed" sign posted on the entrance doors to all Goodyear stores. The official response from the company is as follows:

In an effort to ensure the safety and security of our associates and customers, we have a clear company policy regarding weapons in the workplace. The Goodyear Tire and Rubber Co. prohibits all persons who enter Company property from carrying a handgun, firearm, or prohibited weapon of any kind onto the property regardless of whether the person is licensed to carry the weapon or not. Exceptions apply to on-duty law enforcement personnel. This policy applies to all Company employees, visitors, customers, and contractors on Company property -- including our Company-owned stores. All Company properties have received a decal or sign referencing this policy, and have been instructed to post it.

The policy also restricts off-duty officers of the law from carrying a firearm into the store as well.

[edit] Environmental record

Researchers at the University of Massachusetts Amherst identified Goodyear as the 25th-largest corporate producer of air pollution in the United States, with roughly 4.16 million lbs of toxins released into the air annually. Major pollutants included sulfuric acid, cobalt compounds, and chlorine. [4] The Center for Public Integrity reports the Goodyear has been named as a potentially responsible party in at least 54 of the nation's Superfund toxic waste sites. [5]

In a February 8, 2008 press release Goodyear introduced the launch of a environmentally friendly tire produced using corn starch-based material. The Goodyear Eagle LS2000 partially replaces the traditional carbon black and silica with filler materials derived from corn starch thanks to "BioTRED compounding technology". The new technology increases the tires "flexibility and resistance to energy loss", which extend the tires life-span and lessen the impact on the environment.[6] Similarly, Goodyear announced on April 22nd, 2008 that it has joined the U.S. Environmental Protection Agency's SmartWay Transport Partnership. The transport partnership is an attempt between the truck transportation industry and the EPA to reduce air pollution and greenhouse emissions as well as increase energy efficiency. The SmartWay partnership's tractors and trailers will use Goodyear's Fuel Max linehaul tires that increase fuel efficiency while reducing emissions. According to Goodyear and EPA officials "the fuel-efficient line-haul tires deliver up to 4 percent improved truck fuel economy, and when used with other SmartWay-qualified components, each 18- wheel tractor and trailer used in long-haul can produce savings of up to 4,000 gallons per year, or more than $11,000 annually."[7]

Goodyear's plants in Aurangabad and Ballabgarh, India have received recognition for their excellence in energy conservation, efficiency and management with awards from both state and national governments.[8]

[edit] Goodyear Brands

[edit] Automotive

  • Assurance (cars & minivan)
    • TripleTred Technology
    • ComforTred Technology
  • Fortera (suv)
    • Silent Armor Technology

Fortera Silent Armor with raised letters.
    • TripleTred Technology
  • Wrangler (truck)
    • Silent Armor Technology
    • ProGrade Technology
      • Heavy Duty
  • Eagle (performance)
    • Response Edge
      • Carbon Fiber Technology
  • Nordic (Winter tires)
  • Ultra Grip (winter tires)

[edit] Commercial

  • Commercial Truck
    • Fuel Max
    • Duraseal
  • Off The Road Tires
    • Articulated Dump Truck
    • Rigid Haulage Truck
    • Mobile Crane
    • Scaper
    • Port & Container Handling
    • Dozer and Loader
    • Mine Service
    • Motor Grader
  • ATV Tires
    • Rawhide Camo
    • Rawhide MT/R
  • RV Tires
    • Unisteel series (G670RV, G149RSA, G169RSA, G647RSS, G614RST)
    • Wrangler HT (all weather)
    • Marathon (trailer towing)
  • Aviation

[edit] Non-Tire Industrial

  • Airsprings
  • Industrial hose
  • Hydraulic products
  • Conveyor belt products
  • Power transmission products
  • Molded Transportation products (vibration control)
  • Rubber Track
  • Isoprene monomer
  • Synthetic rubber for medical applications
  • Synthetic rubber for chewing gum

[edit] See also

[edit] People

[edit] Other related topics

[edit] References

  1. ^ History of DJIA, globalfinancialdata.com
  2. ^ Apodaca, Gene. "One person killed in chemical release", KTRK-DT Houston, abc13.com, 2008-06-11. Retrieved on 2008-06-12. 
  3. ^ James, Eric. "Family expresses frustration after plant blast", KTRK-DT Houston, abc13.com, 2008-06-12. Retrieved on 2008-06-12. 
  4. ^ Political Economy Research Institute Toxic 100 retrieved 14 Aug 2007
  5. ^ Center For Public Integrity Superfund Project retrieved 14 Aug 2007
  6. ^ [www.goodyear.com.au/public/download.jsp?id=1017 "Goodyear Launch Environmentally Friendly Tire With Corn Starch"] February 8, 2008. Accessed May6, 2008
  7. ^ "Goodyear Joins U.S. EPA SmartWay Transport Partnership" April 22, 2008. Accessed May 6, 2008
  8. ^ "Energy Conservation" Accessed May 6, 2008

[edit] Trivia

 Trivia sections are discouraged under Wikipedia guidelines.
The article could be improved by integrating relevant items and removing inappropriate ones.
  • In the Japanese anime, Yu Yu Hakusho, the brand of tire is called "Bad Year"
  • In The Naked Gun, Frank Drebin remarks "It’s the same old story. Boy finds girl, boy loses girl, girl finds boy, boy forgets girl, boy remembers girl, girls dies in a tragic blimp accident over the Orange Bowl on New Year’s Day". Jane Spencer then asks "Goodyear?", to which Frank responds "No, the worst".
  • In the Disney/Pixar movie Cars Lightning McQueen runs on "Lightyear" tires, an obvious reference to Goodyear's long-standing relationship as the sole tire supplier for NASCAR; there's even a Lightyear blimp. The name is also a reference to Toy Story series character, Buzz Lightyear.
  • Goodyear supposedly developed custom tires for the Batmobile for use in one of the recent Batman movies. The tires featured the Batman logo as a tread pattern.
  • Goodyear sponsored Wolverhampton Wanderers Football Club from 1986 until 2002. It has a factory located in the City, and until 1994 also had a factory in nearby town, Dudley.
  • In the video game Call of Duty 4, one of the unlockable cheats is called "A Bad Year." When activated, enemies explode into a mass of tires when killed. This is obviously a reference to Goodyear.

[edit] Further reading

  • Richard Korman. The Goodyear Story: An Inventor's Obsession and the Struggle for a Rubber Monopoly (2002)
  • Ronald P. Conlin; "Goodyear Advertising Research: Past, Present and Future" Journal of Advertising Research, Vol. 34, 1994. The real story of Goodyear.

[edit] External links