New Goodyear Organization Structured for 21st Century Success
18 June 1999
New Goodyear Organization Structured for 21st Century Success
AKRON, Ohio, June 17 -- The Goodyear Tire & Rubber Company
announced today major changes in its organizational structure to meet the 21st
century requirements created by recent joint ventures and acquisitions; new
opportunities posed by the globalization of the economy; and its goal to focus
greater resources on better serving its customers.
"As the world's largest tire and rubber company, we must now lead our
industry into the new millennium with a dynamic organization capable of
effective and seamless execution of our business plans," said Goodyear
Chairman, CEO and President Samir G. Gibara.
Under the new organizational structure, Goodyear will have a president
responsible for each Strategic Business Unit (SBU) and newly created senior
vice president positions in key functional areas.
With the announcement by Executive Vice President of North American Tire
Eugene R. Culler Jr., of his decision to retire after a 38-year Goodyear
career, William J. Sharp, currently President of Global Support Operations,
has been named President of North American Tire.
North American Tire will focus on bringing the financial performance of
the business to the level of other SBUs by achieving sales growth, cost
reductions and the integration of the allied Sumitomo Rubber Industries/Dunlop
operation, which is scheduled to close in the third quarter following
regulatory approval.
To allow for greater focus, the current European Region will be split into
two units -- the European Union (E.U.) business and the Eastern Europe, Africa
and Middle East Region business.
Sylvain Valensi, currently Vice President of the European Region, becomes
President of the newly formed E.U. business. This will allow the E.U.
business to concentrate on the integration of the SRI/Dunlop operation into
growth plans and to capitalize on the substantial synergies available as the
result of becoming a clear number two in this market.
Michael J. Roney, currently President of Goodyear Mexico, becomes
President of the Eastern Europe, Africa and Middle East business, which
includes operations in Poland, Slovenia, Turkey, Morocco and South Africa.
This new business unit will focus on enhancing the performance of recent
acquisitions and expansions in Eastern Europe, Turkey and South Africa. The
business functions of the two European operations will be located in Brussels,
and their technical and manufacturing functions will be headquartered in
Luxembourg.
In order to leverage synergies of Goodyear's two General Products
businesses, Dennis E. Dick, currently Vice President and General Manager of
the Chemical Division, has been appointed President of the Engineered and
Chemical Products Division.
In the Latin America Region, Vice President John C. Polhemus has been
named President. Asia Region Vice President Hugh Pace becomes President of
this business unit.
The Global Support Operations position is being restructured into two
leadership positions to reflect the greater responsiveness required to meet
the global needs of the corporation.
Joseph M. Gingo, currently Vice President and General Manager of
Engineered Products, has been named Senior Vice President in charge of
Technology and Global Products Planning. Reporting to this function will be
Research and Tire Technology, as well as the newly created function of Global
Products Planning. This new function will focus on future product development
from a world perspective to better service global customers, improve product
service performance and reduce costs. Also reporting to Gingo will be the
Global Aviation and Off-The-Road tire business units.
Vernon L. Dunckel has been named Senior Vice President of Global Product
Supply. Reporting to this key function are the SBU Production Directors,
Facilities Planning, Purchasing and the newly created function of Global
Manufacturing Rationalization. This latter function will design and implement
a global sourcing strategy to optimize the sourcing of low-cost, high-quality
tires and rubber products.
Goodyear's Engineering Division will have dual reporting to Gingo for
future process technology and to Dunckel for plant engineering applications.
In order to ensure continued corporate business development and to
effectively coordinate the global integration of the SRI/Dunlop alliance,
Clark E. Sprang has been named Senior Vice President for Business Development
and Business Integration.
In other developments, Mike L. Burns assumes the title of Senior Vice
President, Human Resources and Total Quality Culture; John P. Perduyn,
currently Vice President of Public Affairs, has been named Senior Vice
President, Global Communications; and C. Thomas Harvie becomes Senior Vice
President and General Counsel. He will assume additional responsibility for
Government Relations.
The SBU presidents, the CFO and the senior functional vice presidents will
report to Gibara. All assignments are effective July 1, 1999.
Additional changes in responsibility and personnel resulting from this
reorganization will be announced prior to August 1, when they will go into
effect.
"Goodyear's new organizational structure will enable the company to pursue
its 'Mission Into the 21st Century' and to become the best tire and rubber
company in the world by all measures," Gibara concluded.