Tiremakers comment on proposed Detroit bailout

Dec. 17, 2008
When asked by www.moderntiredealer.com to comment on the proposed government bailout of Ford Motor Co., Chrysler LLC and General Motors Corp., Michelin North America Inc. and Goodyear Tire & Rubber Co. -- both of which supply those firms with original equipment tires -- responded with statements.

"Together, the Detroit three represent less than 5% of Michelin North America's sales," said MNA officials, "Ford less than 3% of MNA sales, GM less than 2% of MNA sales and Chrysler less than 1% of MNA sales.

"We support their turnaround efforts and have expressed support (for the companies) to receive appropriate assistance from the U.S. government. We are working with each company on an individual basis to manage payment terms, orders, etc. Michelin's fitments with Ford, GM and Chrysler are primarily on their high-end brands, which are more resilient."

While Goodyear declined to discuss the bailout specifically, it did offer the following: "The effect of the current economic downturn on the whole tire industry, including Goodyear, is a decreased demand for both original equipment and replacement tires.

"We have managed our business every day, both to meet the challenges of the current environment and to be ready when the economy rebounds. Drivers in North America value their mobility and we will be ready with great products for when demand increases again."

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