Goodyear to shut German Plant to Reduce Overcapacity

Goodyear’s subsidiary in Germany, Goodyear Dunlop Tires Germany has announced plans to close its tire factory in Philippsburg, near Stuttgart as part of the company’s drive to reduce overcapacity for low-margin products. The company has not revealed exact details about the timeline for the proposed shutdown. To a large extent, such plants will depend on the outcome of proposed negotiations with the employee unions at the plant. It is expected that at least 890 employees at the plant will lose their jobs.

Speaking about the decision to close the plant, Jürgen Titz, Goodyear Dunlop’s group managing director DACH, said that the plant to close the Philippsburg factory was a difficult choice. He went on to add that Goodyear is very conscious of the social commitment to its employees and will offer further assistance to employees with regard to finding socially sustainable solutions.

While on one hand, Goodyear is closing factories like the Phillipsburg factory and making cuts in less profitable areas, on the other hand the tire manufacturer is investing heavily in innovative products and technologies to help it meet the growing demand for tires with large rim diameters.

Jean-Claude Kihn, president of Goodyear’s Europe, Middle East and Africa region said that the company’s strategy is to increase its presence in the highly-complex and larger-size tire segment, as this particular segment is experiencing above average rates of growth. He added, “Our customers want more of our premium tyres in 17-inch and larger rim diameter sizes. These are in strong demand from our original equipment customers today and will enter the aftermarket in the years to come.”