When car sales fall over the past few months, in many cases suppliers feel the pinch even more than the automakers. For Goodyear, the production is down by 19% and losses are beginning to pile up. As results, Goodyear lost $330 million in Q4 2008, compared to a $55M profit in Q4 2007.
Besides, Goodyear plans to cut nearly 5,000 jobs this year too. The job cuts equal almost 7% of the company's work force and follow the elimination of about 4,000 jobs in the second half of last year.
According to research survey, the demand for new tyres is weak as auto sales slump and the market for replacement tyres is also fall due to people are driving less.