Goodyear Closes Tennessee Plant

AKRON, Ohio--July 11, 2011: The Goodyear Tire & Rubber Company today announced that it has ceased production at its tire manufacturing facility in Union City, Tenn.  On February 10, Goodyear had announced its intention to close the plant by the end of 2011.

"When we announced our intention to close the plant, we expected the shutdown would occur by year-end," said Chairman and Chief Executive Officer Richard J. Kramer.  "Since then, the product transfers to the other Goodyear plants have been completed more quickly than expected.  We are now able to meet the needs of our consumer tire customers without further production in Union City."

This action is consistent with plans outlined at the company's investor meeting earlier this year.

As a result of the accelerated closure and payments to approximately 1,800 associates under the federal Worker Adjustment and Retraining Notification Act, Goodyear expects to record additional after-tax charges of approximately $20 million.  The majority of these additional charges will be recorded in the second quarter of 2011.  

Additional information, including details on the timing of charges and savings, will be provided in conjunction with Goodyear's second quarter 2011 earnings announcement.

Goodyear is one of the world's largest tire companies.  It employs approximately 72,000 people and manufactures its products in 54 facilities in 22 countries around the world.