Goodyear Asia Cements Technology Image with New Tire Lines

COLMAR-BERG, Luxembourg, Aug. 4, 2003 -- Asian journalists experienced a new tire from Goodyear here, but what they really heard was the technology that drives the tires that are sold in their countries.

At stake for Goodyear here were the minds and pocketbooks of the Asian consumer, to whom quality and image are everything.

Hugh Pace, president of Goodyear Asia, said each new tire introduction reinforces the tire giant's image. "Goodyear is the leader in technology and brand value. Everything we do is focused on our image in this important economy," Pace said.

That's why this Luxembourg visit to the company's European Technical Center was so important. "Goodyear Asia continues to develop innovative high- performance, passenger, SUV and light truck lines of tires with our Trinuum Tire Technology. This allows us to meet or exceed drivers' requirements for driving confidence, performance and pleasure," he added.

Trinuum technology consists of "Tri," which represents the power of the company's three technical centers in Europe, Japan and America, and "nuum" which defines the continuum of tire technology to design the perfect tire for every application, every terrain and every driver.

After visiting its technical center here, the Asian journalists traveled to the tire company's Proving Grounds in Mireval, France, to drive the new tires in various handling maneuvers.

Goodyear's image in most of Asia is well established, dating back to 1908. In key countries including Malaysia, Thailand and Indonesia, the company's market share remains strong -- and profitable.

In China, however, its image is not as well developed. Five Chinese journalists are visiting here, and that could be the awareness breakthrough that Goodyear Asia needs, Pace added. Still, the segment's strong performer is China, where Goodyear sales and profits are up 22 percent compared to last year.

Beyond its newest facility in China, Goodyear Asia manufactures tires in India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Taiwan and Thailand, as well as in Australia.

As part of its media launch, the company featured its Ducaro GA premium passenger-car tire, a product of Trinuum Tire Technology. The new tire capped a flurry of new-tire introductions in Asia under the Trinuum umbrella.

In fact, 90 percent of Goodyear Asia's tire line has been introduced in the past three years, according to Pace. This new-tire influx has helped the segment's 2003 first-half bottom line, with unit volume increased by 8.4 percent compared to 2002.

New products also typically fetch better prices and product mix. This year's first half, although adversely affected by higher raw material costs, saw segment operating income increase from $19.7 million to $25.1 million due to improved pricing and product mix, favorable currency translations and higher volume.

For Ducaro GA, Trinuum delivers responsive handling, stylish appearance and quiet performance -- all in one tire. Ducaro GA features a unique technology called Bubble-Blade II System for added traction and quietness, Pace said.

The tiremaker also demonstrated two Luxembourg-engineered tires here -- the Eagle F1 GS-D3 ultra-performance tire and Eagle Ventura all-season performance tire, both designed with Trinuum technology.