Goodyear Tire and Rubber Company

The Goodyear Tire & Rubber Company
Type Public (NYSE: GT)
Industry Manufacturing
Founded Akron, Ohio, U.S. (1898)
Headquarters Akron, Ohio, U.S.
Key people Richard Kramer, CEO
Products Tires
Revenue increase $ 19.6 billion (2007)
Operating income increase $ 1.6 billion (2007)
Net income increase $ 0.6 billion (2007)
Employees 71,000
Website Goodyear.com
The iconic Goodyear blimp

The Goodyear Tire & Rubber Company was founded in 1898 by Frank Seiberling. Goodyear manufactures tires for automobiles, commercial trucks, light trucks, SUVs, 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 very famous throughout the world because of the Goodyear blimp. The first Goodyear blimp flew in 1925. Today it is one of the most recognizable advertising icons in America. The company is the most successful tire supplier in Formula One history, with more starts, wins, and constructors' championships than any other tire supplier. They pulled out of the sport after the 1998 season.

Goodyear is a former component of the Dow Jones Industrial Average.[1]

Contents

Company locations

Principal operating facilities:[2] [3]

North American Tire Manufacturing Facilities. North American Tire owns (or leases with the right to purchase at a nominal price) and operates 23 manufacturing facilities in the United States and Canada.

An aerial view of the Goodyear testing facility west of Fort Stockton, Texas

These facilities have floor space aggregating approximately 24,900,000 square feet (2,310,000 m2).

European Union Tire Manufacturing Facilities. European Union Tire owns and operates 15 manufacturing facilities in 5 countries, including:

These facilities have floor space aggregating approximately 13,400,000 square feet (1,240,000 m2).

Eastern Europe, Middle East and Africa Tire Manufacturing Facilities. Eastern Europe Tire owns and operates 5 tire plants in 4 countries. These facilities have floor space aggregating approximately 7,300,000 square feet (680,000 m2).

Latin American Tire Manufacturing Facilities. Latin American Tire owns and operates 9 manufacturing facilities in 5 countries, including 6 tire plants, 1 textile mill, 1 tire retread plant, and 1 aviation retread plant. These facilities have floor space aggregating approximately 5,600,000 square feet (520,000 m2).

Asia Pacific Tire Manufacturing Facilities. Asia Pacific Tire owns and operates 10 tire plants and 2 aviation retread plants in 9 countries. These facilities have floor space aggregating approximately 6,200,000 square feet (580,000 m2).

Plant Utilization. Worldwide tire capacity utilization rate was approximately 86% during 2007 compared to approximately 82% in 2006 and 87% in 2005. 2007 utilization increased due to the recovery from the 2006 USW strike.

Other Facilities. Goodyear owns and operates three research and development facilities and technical centers:

Goodyear also owns six tire proving grounds, in the following areas:

The company also operates more than 1,800 retail outlets for the sale of tires to consumers, approximately 60 tire retreading facilities and approximately 160 warehouse distribution facilities. Substantially all of these facilities are leased.

History

Goodyear's headquarters

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. In 1912 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.

Expansion 1926-1990

Paul Litchfield

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 F4U Corsair fighter planes for the U.S. Military. By 1956 they owned and operated a nuclear processing plant in Ohio.

In 1944, Goodyear created a subsidiary in Mexico in a joint venture with Compañía Hulera, S.A. de C.V., Compañía Hulera Goodyear-Oxo, S.A. de C.V. or 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 Aerospace, a holding that developed from the Goodyear Aircraft Company after World War II designed a supercomputer for NASA's Goddard Spaceflight Center in 1979, the MPP. The subsidiary was sold in 1987 to the Loral Corp. as a result of restructuring.

In 1987, Goodyear formed a business partnership with Canadian tire retailer, Fountain Tire[5].

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 but Goldsmith reportedly still walked away with $90 million for his efforts.

1990 to present

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

Recent history

On July 10, 2008, the Goodyear Tire & Rubber Company was recognized as one of America’s most respected companies by the Reputation Institute (RI) and Forbes magazine. Goodyear ranked 16th on the magazine’s third annual listing of companies with the best reputations in the United States.[6]

The list is based on the results RI’s Global Pulse consumer opinion survey, which measures the overall respect, trust, esteem, admiration and good feelings consumers hold toward the world’s largest companies.[7]

Scores are based on RI’s seven dimensions of reputation: products/services, innovation, workplace, citizenship, governance, leadership and performance. RI said the 2008 survey indicates that consumers are most influenced by a company’s high-quality products and services as well as its governance and citizenship.

Goodyear’s score of 76.0, represented a 7.54 point increase over 2007 and was the largest year-over-year improvement of any company on the list. Goodyear is the only tire company on the top-75 list.

The recognition from RI and Forbes is the fifth significant honor for Goodyear in 2008. The company was named the world’s most admired company in the motor vehicle parts industry by Fortune magazine.[8] Audit Integrity Inc. and Forbes magazine ranked Goodyear sixth on their list of America’s most trustworthy companies.[9] The Wall Street Journal recognized Goodyear for leading shareholder return for the past five years in the automotive category. Goodyear was also ranked among the Top 100 Corporate Citizens selected by CRO magazine.[10]

The company announced in summer 2009 that it will close its tire plant in the Philippines as part of a strategy to address uncompetitive manufacturing capacity globally by the end of the third quarter.[11]

Timeline

Goodyear Tires Advertisement - Syracuse Post-Standard, February 26, 1916

Corporate structure and leadership

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

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).

Richard Kramer is the chief executive officer and president of the company (since 2010), succeeding Robert J. Keegan.

Subsidiaries

Bluestreak(Indonesia)

Regetta (Australia) Distributed by KMART

LS2000 (Japan) Distributed by Goodyear Autocare

Corporate issues

Sexual discrimination lawsuits

United States Supreme Court Justice Ruth Bader Ginsburg stated,

Lilly Ledbetter was a supervisor at Goodyear Tire and Rubber’s plant in Gadsden, Alabama, from 1979 until her retirement in 1998. For most of those years, she worked as an area manager, a position largely occupied by men. Initially, Ledbetter’s salary was in line with the salaries of men performing substantially similar work. Over time, however, her pay slipped in comparison to the pay of male area managers with equal or less seniority. By the end of 1997, Ledbetter was the only woman working as an area manager and the pay discrepancy between Ledbetter and her 15 male counterparts was stark: Ledbetter was paid $3,727 per month; the lowest paid male area manager received $4,286 per month, the highest paid, $5,236.[12]

Lilly Ledbetter sued Goodyear claiming she was paid less than men doing the same work. She won the suit and was awarded $360,000, the jury deciding that Goodyear had clearly engaged in discrimination. The case was appealed to the Supreme Court. In Ledbetter v. Goodyear Tire & Rubber Co., 550 U.S. ___ (2007), Justice Alito held for the five-justice majority that employers are protected from lawsuits over race or gender pay discrimination if the claims are based on decisions made by the employer 180 days ago or more. The United States Congress overturned this decision by passing the Lilly Ledbetter Fair Pay Act of 2009 which was the first bill signed into law by President Obama.[13]

This was a case of statutory rather than constitutional interpretation. The plaintiff in this case, Lilly Ledbetter, characterized her situation as one where "disparate pay is received during the statutory limitations period, but is the result of intentionally discriminatory pay decisions that occurred outside the limitations period." In rejecting Ledbetter's appeal, the Supreme Court said that "she could have, and should have, sued" when the pay decisions were made, instead of waiting beyond the 180-day statutory charging period.

Justice Ginsburg dissented from the opinion of the Court,[12] joined by Justices Stevens, Souter, and Breyer. She argued against applying the 180-day limit to pay discrimination, because discrimination often occurs in small increments over large periods of time. Furthermore, the pay information of fellow workers is typically confidential and unavailable for comparison. Ginsburg argued that pay discrimination is inherently different from adverse actions, such as termination. Adverse actions are obvious, but small pay discrepancy is often difficult to recognize until more than 180 days of the pay change. Ginsburg argued that the broad remedial purpose of the statute was incompatible with the Court's "cramped" interpretation. Her dissent asserted that the employer had been, "Knowingly carrying past pay discrimination forward" during the 180-day charging period, and therefore could be held liable.

"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.

Environmental record

Researchers at the University of Massachusetts Amherst identified Goodyear as the 19th-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.[14] 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. On February 8, 2008, Goodyear announced the launch of an environmentally friendly tire produced using a cornstarch-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.[15] Similarly, Goodyear announced on April 22, 2008 that it had 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% 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."[16]

Goodyear's plants in Aurangabad and Ballabhgarh, India have received recognition for their excellence in energy conservation, efficiency and management with awards from both state and national governments.[17]

Goodyear products

Automotive

Fortera Silent Armor with raised letters.

Commercial

Goodyear Tire Company mechanic shop in Goodlettsville, Tennessee.

Non-tire industrial (licensed products produced by Veyance Technologies)

Motor racing

Goodyear trailer at a NASCAR Nationwide Series race

Goodyear participates extensively in motorsports both as a sponsor and as a tire supplier. Their involvement includes NASCAR, IndyCar, Formula SAE.

See also

References

  1. ↑ "History of DJIA, globalfinancialdata.com". https://www.globalfinancialdata.com/articles/dow_jones.html. 
  2. ↑ "SEC Form 10K - Annual Report filed 2/14/2008". http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=5725226-101890-105045&type=sect&dcn=0000950152-08-001092. 
  3. ↑ "Goodyear Corporate - worldwide facilities". http://www.goodyear.com/corporate/about/about_facilities.html. 
  4. ↑ "900 Ingenieure, Wissenschaftler und Techniker." Tageblatt. Zeitung fir Lëtzebuerg, 15. Mai 2003. S. 36.
  5. ↑ http://www.fountaintire.com/tires/history
  6. ↑ Kirdahy, Matthew (2008-07-10). "The 75 Most Reputable Companies in the U.S.". Forbes.com. Forbes. http://www.forbes.com/leadership/2008/06/10/reputation-institute-report-lead-cx_mk_0610reputable_table.html. Retrieved 2008-07-10. 
  7. ↑ "The Most Respected Companies in the United States - Reputation Institute Releases Results of its Global Pulse U.S. 2008 Study" (PDF). Reputation Institute. 2008-06-04. http://reputationinstitute.com/events/US_Results-Global_Pulse_08.pdf. Retrieved 2008-06-04. 
  8. ↑ America's Most Admired Companies 2008 Retrieved 17 March 2008
  9. ↑ America's Most Trustworthy Companies Retrieved 27 March 2008
  10. ↑ Schaal, Dennis. "100 Best Corporate Citizens 2008". CRO Corp, LLC. http://www.thecro.com/node/615. Retrieved 2008-02-19. 
  11. ↑ Goodyear to Close Philippines Tire Plant
  12. ↑ 12.0 12.1 LEDBETTER v. GOODYEAR TIRE & RUBBER CO.(No. 05-1074) 421 F. 3d 1169, affirmed.
  13. ↑ Day of vindication for grandma as pay law signed January 30, 2009 WASHINGTON (CNN)
  14. ↑ Political Economy Research Institute Toxic 100 Retrieved 14 August 2007
  15. ↑ "Goodyear Launch Environmentally Friendly Tire With Corn Starch". Goodyear. 2008-02-08. http://www.goodyear.com.au/public/download.jsp?id=1017. Retrieved 2008-05-06. 
  16. ↑ "Goodyear Joins U.S. EPA SmartWay Transport Partnership" April 22, 2008. Accessed May 6, 2008
  17. ↑ ""Energy Conservation"". http://www.goodyear.com/corporate/about/responsibility/energy-conservation.html. Retrieved May 6, 2008. 

Further reading

External links

Goodyear
Blimps

Goodyear Blimp • AD • Airdock • Chicago Crash • GZ-10/15 • GZ-20 • GZ-22 • Inflatoplane • K-1 • USS Akron • USS Macon • ZWG
Divisions

Aerospace (Goodyear Zeppelin) • Dunlop (United Kingdom) • Polyglas • Sava (Slovenia) • Kelly Springfield
Sponsorships

Goodyear 500 • PeopleMover • Playhouse • Polymer Center • Revue • Silents • Theatre • Wingfoot Express • Wingfoot basketball
People

Charles Goodyear • Fred Gampper • Stanley Gault • Lilly Ledbetter • Frank Seiberling • Ward Van Orman
Other

2009 Fair Pay Act • Chimney • Cremaster 1 • Goodyear, Arizona • Ledbetter v. Goodyear • Massively Parallel Processor • STARAN
Annual revenue decrease $16.3 billion USD (2009) · Employees 69,000 (2010) · Stock symbol NYSE: GT · Website GoodYear.com