AKRON, Ohio — In a move to improve the profitability of its U.S. retail operations, Goodyear Tire & Rubber Co. said it plans to exit 92 underperforming locations by the end of the year.
"Following a rigorous review of operating performance and local market dynamics, these company-owned outlets are not producing acceptable returns," said Scott Vogel, vice president, retail operations, North American Tire.
"Taking this action now will allow us to focus our attention on locations with the best long-term potential," he said. "It will help position Goodyear to be a stronger competitor."
Vogel said the company will not announce the store locations impacted until it first communicates with the approximately 500 full-time and 100 part-time associates who will be impacted, as well as property owners of leased facilities.
The action will result in after-tax charges of approximately $30 million, of which $15 million will be recorded in the third quarter of 2008. In addition to the strategic benefits associated with it, the action is expected to eliminate losses of approximately $9 million annually related to these locations.
For more information about Goodyear, go to: www.goodyear.com.