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March 22, 2001 01:00 AM

Soft OE demand prompts Goodyear production cutbacks

Bruce Davis
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    AKRON, Ohio (March 22, 2001) — Goodyear made ``substantial´´ production cutbacks in February and March to allow it to adjust inventories in light of reduced orders from vehicle makers. The company continues to monitor demand levels and could make additional cuts if necessary, a spokesman said.

    Goodyear declined to specify how large the cuts were, but said industry shipments through February were off 5 percent for car and light truck tires and 17 percent for commercial tires from a year ago.

    Specifically, Goodyear reduced production at three U.S. and one Canadian plants during February and March, including:

    *Freeport, Ill, where radial light-truck tire production was halted in mid-February and is not scheduled to resume until mid-April; the move affects about 100 workers at the plant, which also makes farm tires.

    *Napanee, Ontario, where the car tire plant was shut for the week of March 11-17, cutting production of about 130,000 tires, according to capacity data.

    *Lawton, Okla., where production of car tires was throttled back 50 percent for the weeks of March 11 and 18, cutting about 440,000 tires out of the pipeline, according to capacity data.

    *Danville, Va., where medium commercial-truck tire production is being scaled back by 50 percent every other week for several weeks; the action resulted in 150 temporary layoffs.

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