Goodyear Tire & Rubber Co. will eliminate 850 jobs and incur pre-tax charges of at least $130 million as it moves medium truck tire production out of its Danville, Va. plant.
On January 9 the tiremaker confirmed to MTD that it planned to end TBR tire production in Danville, while maintaining the facility’s mixing and aviation capabilities. The plant has been in operation since 1966.
In a February 5 filing with the U.S. Securities and Exchange Commission, Goodyear says it met with United Steelworkers representatives on January 30th “and approved a plan to reduce the company’s production capacity and production cost per tire in Americas.”
Employees in Danville are members of the USW Local 831.
Goodyear says it expects the rationalization plan to be complete by the end of 2025, and estimates that its total pre-tax charges will range from $130 million to $140 million.
Of that amount, about $80 million to $90 million will be spent on associate-related cash charges, while the balance will be for “accelerated depreciation, pension curtailment and other asset-related charges.”
Goodyear says it expects to record about $100 million of those charges in the first quarter of 2025, and the remaining $40 million throughout the remainder of the year.
The tiremaker says moving the TBR production — it so far has not said what other plant or plants would absorb those units — is expected to result in an improvement in its Americas segment operating income of about $15 million in 2025 and approximately $65 million annually in subsequent years.
