Goodyear Tire & Rubber Co. will discontinue consumer tire production at its plant in Amiens, France, as part of its strategy to slash its high-cost tire manufacturing capacity.
The action is a result of the plant's "uncompetitive costs," says Serge Lussier, vice president of manufacturing for Goodyear Europe, Middle East and Africa. It will take six million units out of production, which is part of Goodyear's goal to remove 15 million to 25 million units over the next two years.
"Due to high costs and weak industry demand, the consumer tires produced there are uncompetitive in the marketplace."
The Amiens plant also produces farm tires. Cessation of consumer tire production is expected to be completed by the third quarter of 2010 and will result in the elimination of 820 jobs. Estimated charges associated with the action will total $55 million, the majority of which will be recorded during the second quarter of 2009.
Production at a second tire plant in Amiens will not be impacted by the action, say Goodyear officials.