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Goodyear moving tire production out of Taiwan plant

tire wholesalers goodyearGoodyear has announced that they will be closing there one and only plant in Taiwan in an effort to reduce costs. They will seek to move production to a lower-cost country. The Taoyuan plant currently manufacturers passenger and light truck/SUV tires and employs over 250 people. The plant has been pumping out Goodyear tires for the Taiwan and Asian export markets for 41 years. The official last day of the plant is just a couple months from now: July 31, 2010.

Despite the plant closure, the company released a statement that reiterated the fact that “Goodyear remains committed to the Taiwan market and will work to ensure that there is no disruption to the supply of products or services to its valued customers.”
Just 3 years ago, Goodyear had announced ambitious plans to invest almost $300 million in modernizing the facility and equiping it for the production of low-profile premium tires. In 2007, Goodyear Asia Pacific president Pierre Cohade had said: “This new investment underscores our confidence in Taiwan’s manufacturing capabilities, with its unprecedented competence in innovation, high-quality and flexible workforce, as well as its supply chain management. For Goodyear, we will continue to work with our partners to provide best-of-breed products and services to meet the needs of our customers in the Taiwan and global markets.”

It seems that despite their best intentions, Goodyear has fallen victim to the hard-hitting downturn that is affecting so many companies in the automotive industry. It will be interesting to see which “low-cost” country receives the privilege of hosting Goodyear’s new plant. Tire wholesalers should not expect any delay or disruption in inventory. No word yet on when that decision will be made.


Filed under: Goodyear Tires, Tire News, Uncategorized

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