Goodyear Chairman Discusses 2000 Plans
21 January 2000
Goodyear Chairman Discusses 2000 Plans
LAS VEGAS, Jan. 20 -- Speaking to the largest gathering of
customers in the company's history, Goodyear's top executive today outlined
plans to improve performance in the coming year.
"If last year's strategy could be described as one of aggressive
acquisition and ambitious rationalization, then the strategy for a turnaround
in 2000 -- in contrast -- will be one of consolidation," said Samir G. Gibara,
chairman, CEO and president of The Goodyear Tire & Rubber Company.
"It is natural that a major acquisition should be followed by a pause
before resuming a new round of further expansion," he said. During 1999,
Goodyear acquired control of the Dunlop tire businesses in North America and
Europe.
Gibara told the 4,500-member audience -- tire dealers and major
replacement market customers of the company's North American Tire business
unit -- that they "occupy a very significant place" in this strategy.
During 2000, he said Goodyear's business plan calls for: concentrating on
sales growth in existing businesses; enhancing product and service quality;
completing the integration and upgrading of its global operations; increasing
productivity; significantly improving its financial performance; and
solidifying its relationship with customers.
"Consolidating and integrating our acquisitions is a priority," Gibara
told the tire customers. "This is important to you in North America because
we will be helping fill your needs for competitively priced, value-line tires
from our facilities in Eastern Europe and Turkey, as well as Brazil, Mexico
and Venezuela."
Gibara said the company's global sourcing capability enables it to grow
its replacement tire business faster than its business with automakers. "This
manufacturing strategy is in the best interest of our customers in terms of
product quality, availability and price. It means more replacement products,
higher fill rates, faster delivery and better service."
Gibara said excellent customer service -- even in this era of electronic
commerce and instant communications -- remains based on interpersonal, one-on-
one relationships.
"Today's standard by which customers measure relationships with suppliers
has become a lot more quantitative," he said. "I strongly believe that as
long as there will be people making business decisions, there cannot be a
viable substitution for personal relationships based on mutual trust and
respect. Loyalty cannot be subject to a click of the mouse.
"Customers want and need a personal experience. They desire personal
contact. They demand personal attention. And, they will do business with
those companies that provide the human touch," he continued.
"I pledge to you today that we will continue to provide that human touch
that has made our relationship with you so special and the envy of our
industry. No matter how large the Goodyear franchise is, and no matter how
diversified our channels of distribution become, we must learn to continue to
treat our customers one at a time, all the time."
Gibara called the tire dealers who sell its Goodyear, Kelly and Dunlop
brand tires "the tire industry's single most powerful sales force" and thanked
them for their continued loyalty. He said Goodyear and its customers "have a
special relationship that can endure the best and the worst of times.
"I speak for the entire family -- Goodyear, Kelly and Dunlop -- when I say
that we covet this relationship. I recognize the enormous responsibility we
have to correct what is wrong and never stop improving what is right."
Goodyear is the world's largest tire and rubber company. Headquartered in
Akron, Ohio, the company manufactures tires, engineered rubber products and
chemicals in more than 90 facilities in 30 countries. It has marketing
operations in almost every country around the world. Goodyear, with the
addition of its Dunlop tire joint ventures, employs more than 105,000 people
worldwide.