Goodyear Tire to Permanently Close Gadsden, Alabama Factory

Goodyear to Permanently Close Gadsden, Ala. Factory

The company expects the closure of the plant, combined with other rationalization actions, to result in approximately $130 million of annual savings in 2021 when compared with 2019.

According to a filing with the U.S. Securities and Exchange Commission, Goodyear Tire & Rubber Co. plans to close its Gadsden, Alabama factory after reaching a tentative bargaining agreement April 17.

The bargaining agreement remains subject to approval by the membership of the local union, Goodyear said in its filings April 23. The company expects the closure combined with other rationalization actions expects to result in approximately $130 million of annual savings in 2021 when compared with 2019.

The company approved a plan to offer voluntary buy-outs to certain associates at its tire manufacturing facility in Gadsden during the third quarter of 2019. In the fourth quarter of 2019, the company accepted approximately 740 buy-out applications. The voluntary buy-out plan was substantially completed during the first quarter of 2020 and cash payments under this plan totaled $75 million.

The company estimates the total pre-tax charges associated with the April rationalization 2020 plan to be approximately $280 million to $295 million, of which approximately $170 million to $180 million are expected to be cash charges, primarily for severance and other associate-related costs of approximately $55 million and $40 million, respectively, and other closure costs of approximately $75 million to $85 million, according to Goodyear’s filing with the SEC. In addition, non-cash charges, primarily related to asset write-offs and accelerated depreciation, are expected to be approximately $110 million to $115 million.

Goodyear says it expects to record approximately $170 million of these charges in the second quarter of 2020 and to make cash payments of approximately $45 million in 2020. The remaining charges will be recorded and the remaining cash payments will be made thereafter, primarily in 2021 and 2022. The company expects to substantially complete this rationalization plan by the fourth quarter of 2021.

Goodyear says its plans to close the plant are “part of the company’s strategy to strengthen the competitiveness of its manufacturing footprint by curtailing production of tires for declining, less profitable segments of the tire market.”

You May Also Like

Training and Technology Will Lead the Way in OTR Tires

When we look at how OTR tires keep up with innovations in equipment, it’s all about maximizing productivity.


After two years of probably the strangest logistics we've lived through—and a roller coaster ride of an economy—the OTR tire market is surprisingly robust. The construction industry has slowed down slightly, and there's a lot of talk about a recession, but so far, we haven't seen a lot of publicly or privately funded projects pull back, and quarries and mines are running hard. All that activity is good for the tire industry.

Maxam Tire Completes Core Size Range for Agrixtra H Series

Maxam Tire completed the core size range for four-wheel drive self-propelled nutrient applicators. The company says these sizes to the Agrixtra H will further allow farmers’ and growers’ access to its product line. Related Articles – Yokohama OHT Releases New Size for Alliance Agri Star II – Winter Tire Market Flat, But EV-Specific Products Bring

Yokohama OHT Releases New Size for Alliance Agri Star II

Yokohama Off-Highway Tires America (YOHTA) has released the new 800/70R38 size of its popular Alliance Agri Star II farm radial tire. The new, larger size features a 173D high-load rating and is rated for speeds of up to 40 mph. Related Articles – Last-Mile Delivery Tires Set to Outpace Long-Haul Tire Volumes – Yokohama Releases

Alliance-agri Star II
Winter Tire Market Flat, But EV-Specific Products Bring Opportunity

Affected by pandemic supply chain disruptions and the uptick in sales of all-weather tires, the winter tire market in the U.S. has been largely flat in recent years. Despite the expectation that this will continue, tire dealers in snowy regions like the northern U.S. and Canada still should plan ahead to meet consumer demand in

Hankook Tire Launches iON Evo EV Tires in the US

Hankook Tire America launched the company’s first tires specifically designed for electric vehicles (EVs) in the US. The iON evo AS and iON evo AS SUV are built with Hankook’s “EVolution” technology, which focuses on tread wear, noise reduction and unique grip performance for EVs, said the company. Related Articles – Vredestein Launches New Pinza

Other Posts

Goodyear Announces Cost Savings Actions

Goodyear said its Q4 results fell short of expectations given a significantly weaker industry backdrop.

Goodyear and Gatik Demonstrate Goodyear SightLine Technology

Goodyear and Gatik demonstrated, in a proof of concept, intelligent tires powered by Goodyear SightLine technology.

Top 10 Stories of 2022

As the tire industry continues to recover from pandemic supply chain strains, 2022 brought a host of new tire launches as well as excitement around emerging tire trends… and topics that make you scratch your head. I think you’ll definitely see what I mean in this year’s list of top stories from 2022. Related Articles

Goodyear Appoints New CFO, Executive Vice President

The Goodyear Tire & Rubber Company has appointed Christina Zamarro to the role of executive vice president and chief financial officer, reporting to Richard J. Kramer, chairman, CEO and president. In this role, Zamarro will lead Goodyear’s Global Finance organization and oversee all aspects of the company’s corporate finances, including treasury, investor relations, accounting, audit