Goodyear Tire & Rubber might suffer falling sales in North America

Goodyear Tire & Rubber might suffer falling sales in North America

Goodyear Tire & Rubber has warned that they might fail to do well in the North American market this year. The company is facing slowing demands from the automakers and rising raw material prices.

Goodyear is already going through a massive restructuring phase to cut costs and is also on the way of closing down about one-third of its private-label businesses.

Bob Keegan, chief executive of Goodyear however is optimistic about sales in other regions. Market analysts believe that the company has about 20 per cent excess capacity in North America leading to lowering profits in the region.

Goodyear is struggling due to high labor costs in the region and fierce competition from imported markets.

They are also in talks with the United Steelworkers union on a new labor contract for 17,000 US workers.