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July 05, 1999 02:00 AM

CHANGES AT GOODYEAR: NEW EXEC TEAM TO HANDLE SUMITOMO ALLIANCE

Vera Fedchenko
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    AKRON—With the ink still fresh on its recently signed alliance with Sumitomo Rubber Industries Ltd., Goodyear has reorganized its top management team to preside over its new ventures. The Akron tire maker will have a president responsible for each of its business units and newly created senior vice president positions in key areas. Goodyear announced the changes June 17, three days after signing the final joint-venture agreements with Sumitomo.

    The change in management structure is a direct result of the Sumitomo alliance, a Goodyear spokesman said. The alliance is expected to save the company $300 million to $360 million annually by the end of the third year.

    ``We'll be moving ahead very quickly once we get the final approval over in Europe to start to operate this new alliance,'' the spokesman said. ``The magnitude of it requires organizational changes. That's one of the primary reasons we're doing it.''

    The shifts in management come on the heels of the July 1 retirement of Eugene Culler Jr. as executive vice president of North American Tire. His replacement as president of the North American unit, William Sharp, will focus on growing that unit's sales and integrating the Dunlop operations.

    Goodyear said it will split its European region into two units—a European Union unit comprising Western Europe and a unit for its Eastern Europe, Africa and Middle East operations.

    With the addition of Dunlop's operations, T.C. Debica in Poland and Sava Tire in Slovenia, Goodyear's European region was approaching the size of its North American Tire unit, but with different countries spread over a large geographical area, the spokesman said. The tire maker decided it was too large for a single executive to manage, so divided it between two.

    Sylvain Valensi, formerly vice president of the European Region, is now president of the European Union business unit, while Michael Roney, formerly president of Goodyear Mexico, now is president of Eastern Europe, Africa and the Middle East business unit.

    The business functions of the two European units will be located in Brussels, Belgium, while the technical and manufacturing functions will be based in Luxembourg.

    The changes will have little effect on Goodyear's Akron operations, other than moving six people from its European executive committee to Brussels, the spokesman said.

    In Latin America, Vice President John Polhemus has been appointed president. Asia Region Vice President Hugh Pace is now president of that unit.

    Dennis Dick, formerly vice president and general manager of the Chemical Division, has been named president of the Engineered and Chemical Products Division.

    The tire maker is restructuring its Global Support Operations position into two leadership positions. Joseph Gingo has been appointed senior vice president in charge of Technology and Global Products Planning. He had been vice president and general manager of engineered products. Vernon Dunckel has been named senior vice president of Global Product Supply. He had been director, tire manufacturing, Europe.

    To coordinate the global integration of the Sumitomo/Dunlop alliance, Clark Sprang, formerly vice president, business development, has been named senior vice president for business development and integration.

    All new assignments were effective July 1. Goodyear said more changes will be announced by Aug. 1.

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