Goodyear To Close 92 Stores; Move Half Production Out Of U.S.

August 20, 2008 12:05 p.m. EST

Akron, OH (AHN) - Goodyear Tire & Rubber Co. announced Wednesday it will close 92 of its 742 company-owned stores by the end of the year because it wants to cut costs.

Goodyear, America's largest tire maker and marketer of the Goodyear Blimp, did not identify which stores will be closed, but did add it will alert 500 full-time and 100 part-time employees whose jobs will be cut before the locations are announced publicly.

"Following a rigorous review of operating performance and local market dynamics, these company-owned outlets are not producing acceptable returns," Scott Vogel, vice president, retail operations, said in a written statement to the media.

Akron-based Goodyear, which employs 85,000 worldwide, sells tires and related products and services.Goodyear posted a net income of $75 million or 31 cents a share for the second quarter.

Goodyear's anticipated store closings are part of a larger plan to move half of all tire production to lower cost-manufacturing countries by 2012. Japan's Bridgestone and France's Michelin have reported decreases in sales as well as a result of the soured American economy.