Comprehensive foreign reports, due to the continued weakness of the economic situation in Australia and New Zealand, Goodyear Tire & Rubber Company plans to reduce its business in the region and instead focus more on the Asian market with strong growth.
Goodyear currently employs approximately 2,800 employees in Australia and New Zealand. The company recently said it will take steps to curb its business expansion in the region. Goodyear’s financial report earlier this year showed that the company will close several retail stores in Australia and New Zealand.
Richard Kramer, chairman and CEO of Goodyear, said that Australia’s economic growth has slowed down, and the company’s earnings in the Asian market have hit a record high, while its business in Australia has remained flat. Goodyear has a large retail business in Australia and the company will restructure this business.
Goodyear closed down a tire tread factory in Victoria, Australia, and cut 26 employees at the same time. According to a spokesman for Goodyear, the closure of the above-mentioned plant is not part of the company's future restructuring in Australia.
Australia is Goodyear’s largest market in Asia, and its sales in the past two years accounted for more than 40% of its total sales in Asia. In 2008, Goodyear terminated its tire production business in Australia, shut down a tire factory in northern Melbourne that has a history of nearly 100 years, and cut nearly 600 employees.
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