Tiremakers to keep inventory down in 2010
Keeping inventories and capital expenditures in check will be a major priority for both Groupe Michelin and Goodyear Tire & Rubber Co. next year.
In its recently published financial results, Michelin said it will continue to cut inventory levels and reduce capital expenses, an estimated 700 million euros annually. Michelin's goal is to generate "positive free cash flow," according to company officials.
Meanwhile, Goodyear Chairman, CEO and President Bob Keegam recently stated that it is not Goodyear's intention "to return to the levels of inventory we had in 2008."
Goodyear closed two of its distribution centers and also stopped using several public warehouses in 2009. It plans to exit more public warehouses in 2010.