Goodyear focuses on profitability and reduction of costs
Valor Econômico - 06/30/2008
After rushing to meet demand caused by the boom in the sales of popular cars in the country, Goodyear is getting ready to increase its production of tires aimed at the models with engines of 1,300 to 2,000 ml of engine capacity. The initiative is part of the global strategy of the company to increase the lines of tires with greater added value, and to reduce production costs. The investments announced for Brazil also include the area of trucks and buses. Last Thursday, Goodyear's international headquarters, based in the USA, informed it will invest US$ 200 million in Brazil. The investments will start this year and will go through 2013. Other units that will receive investments are China (US$ 500 million) and Chile (US$ 400 million), besides the USA (US$ 700 million). According to Benedito Modena de Faria, one of the three CEOs of the company in Brazil, the sales of 16" wheel tires "boomed" in the national market in the last months. This type of tire is used in models like Honda Civic, Renault Megane, VW Golf, Chevrolet Vectra, and Toyota Corolla. The demand for agricultural machines was classified as "unprecedented" in the history of the Goodyear in Brazil. In fact, the unit responsible for this segment, located in the district of Belenzinho, in the capital of São Paulo, will be one of the units to benefit from the investments. Most of it, however, will be invested in the unit of Americana (SP). The third plant of the company in the country, located in Santa Bárbara D' Oeste (SP), focused on the recapping of tires, was not included in the investment plan. Goodyear‘s officers did not provide any further details on the destination of the resources. Giano Agostini, CEO of the commercial area of the Brazilian subsidiary, does not rule out new investments in the country in the next years.