Goodyear makes progress in cost savings plan
Goodyear Tire & Rubber Co. wants to achieve up to $2 billion in cost savings by the end of 2009. It has already achieved nearly $750 million in savings against that target.
"More than $500 million of these savings are a result of continuous improvement initiatives," say Goodyear officials.
"While announced savings from eliminating high-cost manufacturing total $135 million, only $35 million of this was reflected in results through June 30.
"Sourcing raw materials, equipment and products from Asia and other low-cost countries has resulted in savings of $60 million... selling, administrative and general expense savings-to-date total more than $150 million."
Goodyear Chairman, CEO and President Bob Keegan says Goodyear remains "on track to achieve targeted savings.
"While some of these savings are offset by currently elevated inflation levels in areas such as energy and some manufacturing inefficiencies in advance of footprint reductions, we are confident structural savings will be achieved on a net basis, particularly in North America."