Goodyear releases October results
Goodyear Tire & Rubber Co.'s shipments of consumer replacement tires were "down" last month, according to the company.
However, Goodyear's commercial replacement shipments "generally reflected industry shipments...(which were) up from last year's levels."
The Akron, Ohio-based tiremaker's original equipment shipments "were better than the industry (average) for consumer tires but below the industry for commercial tires."
According to Goodyear, industry consumer OE shipments dropped 11% from last year; industry commercial OE shipments fell 24%.
"In light of weak OE and replacement consumer and commercial markets, significant production cutbacks were made in October," say Goodyear officials.
"Substantial production cutbacks are expected in November as the company continues aligning inventories with market conditions."
The biggest news out of Goodyear in October was the introduction of its G3 Xpress distribution system that requires tire dealers with sales volumes under the $300,000-a-year mark to buy tires from authorized Goodyear wholesalers.
The company also adjusted payment terms from 90 days to 60 days.
"Both decisions are expected to result in a more productive supply chain."