Goodyear cuts its factory utilization to 68%
The Goodyear Tire & Rubber Company reported that the capacity utilization rate of its factories decreased globally.
The company is one of the leading tire manufacturers and operates in most regions of the world.
In 2020, Goodyear’s net sales were $ 12.321 million and net loss was $ 1.254 million.
First, the utilization rate of the company’s global tire capacity was approximately 68% during 2020, compared to approximately 85% in 2019 and 87% in 2018.
The decline in utilization rate in 2020 was driven by pandemic-related factory closures earlier in the year.
Then most of Goodyear’s plants returned to full capacity at the end of the third quarter and remained at full capacity during the fourth quarter.
Specifically, the reported capacity utilization is an overall company average.
Additionally, utilization rate can vary significantly between product lines, depending on the complexity of the tires, and between commercial and consumer tires, and can also vary between business segments.
Goodyear
The company owns and operates two research and development facilities and technical centers, three development centers, an innovation laboratory and seven tire testing grounds.
It also leases its corporate and American headquarters and its research and development facilities and technical center in Akron, Ohio.
It operates approximately 1,000 retail outlets for the sale of its tires to consumers and commercial customers, 50 tire retreading facilities, and 220 warehouse distribution facilities.
All of these Goodyear facilities are leased.
The company manufactures its products in 46 plants located around the world, including 13 in the United States.
The company’s tires are offered for sale to vehicle manufacturers for assembly as original equipment and for replacement around the world.
Finally, the company manufactures and sells tires under the Goodyear, Dunlop, Kelly, Debica, Sava and Fulda brands and various other Goodyear “own” brands, and the private labels of certain customers.
