Goodyear Announces Fulda Plant Closure, Affecting 1050 Jobs
In a tough call, tire manufacturer Goodyear has decided to shut down its plant in Fulda, Germany, affecting approximately 1050 jobs. The company stated that this move was necessary to reduce overcapacity and align its production structure with demand. Tire production at the Fürstenwalde plant in Brandenburg will also cease by the end of 2027, impacting about 750 employees.
Planned Closure and Consultations
The closure of the Fulda plant is set for September 2025, subject to employee consultations. Attributing to a significant and rapid deterioration in market outlook across all sectors of the tire industry, increased cheap imports from Asia, and ongoing inflationary pressure, the company cites these as contributing factors to the tough decision.
Goodyear's Future Operations and Impacts
This cost-cutting measure aims to improve Goodyear's overall cost structure and secure its long-term competitiveness and profitability. The brand's Fulda tire production will not be affected, with tires continuing to be manufactured at various plants and remaining available. Goodyear expresses regret for the situation, acknowledges its responsibility towards its employees, and aims to find fair solutions for affected individuals.
Local Employee Support
Around 90 sales and administration staff from the Fulda location may have an opportunity to shift to other Goodyear facilities in Hanau or work from home.
Goodyear in the Global Context
With more than 74,000 employees spread across 57 plants in 23 countries, Goodyear is a renowned player in the tire industry. In Germany specifically, the company employs approximately 5000 individuals.
Potential Impact on Remaining Plants and Tire Suppliers
Goodyear's decision to close its Fulda plant might necessitate seeking assistance from tire suppliers to manage increased demand at its remaining facilities. Though the Fulda brand tires will still be available, they will primarily be produced at other Goodyear sites.
Insights from the Tire Industry
Economic conditions such as declining demand from key customer sectors, supply chain disruptions, labor shortages and layoffs, and market competition can significantly impact tire suppliers worldwide, including Goodyear. Strategies to combat these challenges include operational efficiency and sustainability enhancements, portfolio diversification, workforce development, strategic collaborations, and innovation through research and development.
