Goodyear Boosts New Tire Innovations
4 September 1998
Goodyear Boosts New Tire Innovations
AKRON, Ohio, Sept. 3 -- In a bid to improve its
competitiveness in the world's biggest tire market, America's largest tire
company plans to accelerate new product introductions in the next three years.
During that time, Goodyear will introduce 21 new lines of passenger-car
and light-truck tires to grow its business and increase profits, according to
Marco Molinari, vice president of sales and marketing for North America Tires.
"If you are innovative enough, you can have a sustainable competitive
advantage," Molinari said. "Therefore, customer-driven innovation must rule
our product plans.
"For example, we're confident that our run-flat and aquachannel
technologies and proprietary ultra-tensile steel tire reinforcement give us a
competitive advantage in North America," Molinari said.
By 2003, Goodyear will have a run-flat tire lineup to cover 75 percent of
vehicle applications, Molinari said.
This new product focus gives the company the opportunity to streamline its
tire lines from 59 to 38. By the end of 2000, 80 percent of its lines will be
less than three years old, Molinari said.
To accomplish this, the company hired 125 technical associates last year
and will employ another 25 by the end of 1998. In addition, engineers have
worked with scientists from the U.S. Department of Energy's Sandia National
Laboratories since 1993 on computational analysis tools in tire mechanics,
materials and manufacturing.
"As a result, we are shortening product development time, allowing us to
bring new products to market faster," he said.
Implementing technological advances, Goodyear hopes to re-invent market
segments such as winter tires and develop new run-flat markets, Molinari said.
In the next 12 months, the company will add two new winter tire lines and
eliminate seven to innovate and simplify its portfolio simultaneously.
Innovation also is being applied to tire concepts in the growing light
truck/sport utility vehicle market. Replacement light truck tire shipments
are expected to break a record with 30.5 million tires this year, up from
29 million last year, according to the Rubber Manufacturers Association.
A recently introduced two-tire system -- called Wrangler RF-A (rotation-
free Aquatred) -- takes the worry and rotation out of tire maintenance,
Molinari said. "The two-tire system is ingenious, and it makes sense.
Treadwear patterns differ front to rear on light-truck tires. The RF-A uses
separate tread designs and tire shapes to resist wear at each position."
Goodyear research also shows that more sport-utility vehicles are going
off-road, more than 20 percent. More aggressive, innovative tread designs and
cut-resistant sidewalls are in development to capture this growing market
segment, Molinari said.
"We can't afford to ignore the fast-growing off-road enthusiasts," he
added. In 1996, retail sales for off-road products were nearly $557 million.
Replacement passenger tire shipments also are expected to shatter records this
year, according to the RMA. Aftermarket auto tire shipments are forecast to
reach 182.5 million tires this year, while original-equipment shipments to
automakers are to notch 56.1 million tires for the year, down from
57.8 million last year.
"Innovation and new products are capturing the imagination of today's
consumer," Molinari said. "Given the growth prospects in the North American
tire market and Goodyear's high brand loyalty, we expect to continue
satisfying our customers while adding to our bottom line."
Goodyear, the leader in brand loyalty in its home market, has sales more
than twice that of its nearest competitor in North America. Molinari said
innovative products aimed at what consumers care about most are responsible
for the company maintaining its lead.
"Just as the radical design of Aquatred drove consumer awareness about the
hazards of rain-slick roads and our bevy of run-flat tires focused on the
dangers of being stranded along the road, our next generation of tires will
use innovation to address convenience and safety issues," Molinari said.
In the case of run-flat tires, the AAA Foundation for Traffic Safety said
that in 1995, 543 pedestrians were killed on interstate highways. A three-
year sample of Texas, Missouri and North Carolina interstate accidents
revealed that 18 percent of the fatalities involved someone working on their
vehicle along the road.