Goodyear Plans to Downsize in East Germany and Fulda
American tire manufacturer Goodyear is set to shutter its operations in Fürstenwalde, East Brandenburg, and Fulda by 2027 and 2025 respectively. The company announced these plans on Thursday, impacting around 1750 jobs in total.
The Fürstenwalde plant employs around 930 workers, but the 'mixing plant' – where rubber compounds are produced – will remain active. Goodyear cited overcapacity and a desire to align production structure with demand as the reasons for these changes. The company also lamented the deteriorated market outlook and the burden of low-cost Asian imports on European manufacturers.
These decisions have left an unsettling feeling among the workforce. Brandenburg's Minister for Economic Affairs, Jörg Steinbach (SPD), plans to meet with Goodyear management to better understand the situation and explore strategies to preserve industrial jobs. Steinbach expressed empathy for the workers, pledging his support in navigating this challenging period.
Goodyear's employees and the IG BCE trade union are not giving up without a fight. Leading figures like Rolf Erler, District Manager Berlin-Mark Brandenburg, are determined to preserve the Fürstenwalde plant – a tradition that dates back over 80 years. They deem Goodyear's move to be overly focused on profit maximization, highlighting the lack of strategic partnerships with local businesses like Tesla's Gigafactory nearby.
Goodyear is a global giant in the tire industry, with over 74,000 employees and 57 plants in 23 countries. Besides Germany, the company is present in various other nations. The German branch of Goodyear has over 5,000 employees.
These changes in Fürstenwalde and Fulda may have ripple effects on Goodyear's suppliers. The company's decision to explore alternative sources for rubber compounds suggests the mixing plant in Fürstenwalde's future may be uncertain.
In response to the layoffs in its Danville facility, Goodyear is collaborating with local and regional partners to foster workforce training, job placement assistance, and support services – efforts aimed at strengthening the community's economy and creating new opportunities. The company is similarly discussing ways to reduce job losses with its staff representatives.
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Insights (optional and integrated into the article, about 15% of the total content):
- Goodyear's Danville facility in Virginia is set to see layoffs of 850 employees and a plant transformation to concentrate on rubber mixing and aviation tires.
- The city of Danville and regional partners are supporting the displaced employees through workforce training, job placement assistance, and support services. Goodyear will invest between $130 million to $140 million in transforming the facility.
- Goodyear is working with its union representatives to minimize job losses during the transition.
