CEO says Goodyear making more cost cutting plans

Posted April 7, 2009 10:55 a.m. EDT
Updated April 7, 2009 11:15 a.m. EDT

— The top executive of Goodyear Tire & Rubber Co. says the biggest U.S. tire company will consider more cost cutting this year if measures already taken aren't enough.

Akron-based Goodyear in February said it would cut nearly 5,000 jobs this year. A big drop in sales led to a loss of $330 million in the 2008 fourth quarter.

In comments made Tuesday at the company's annual meeting of shareholders, Goodyear Chairman and CEO Robert Keegan said the company is preparing contingency actions beyond various strategies in place if market conditions further deteriorate.

Keegan didn't specify what those contingency actions may be, or whether they involve more job cuts.

North Carolina, Cumberland County and Fayetteville have offered Goodyear a total of $38 million in incentives in recent months to secure a $200 million investment in the company's Fayetteville plant. Goodyear has agreed to keep at least 2,000 workers at the plant in exchange for the incentives.

Almost 3,000 people work at the Goodyear plant in Fayetteville, making it the city's largest private-sector employer.