Goodyear nixes plans for tire plant
SAO PAULO, Brazil-Goodyear's Brazilian subsidiary has notified local authorities in the state of Rio Grande do Sul it has cancelled plans to build a tire plant there.
Goodyear originally announced plans in 1998 for a $180 million facility to be completed by year-end 1999 in Glorinha, near the site Ford Motor Co. was developing as its ``Blue Macaw'' assembly plant. By mid-1999, the slumping Brazilian economy prompted Goodyear to postpone the project indefinitely.
``Considering the current economic situation and the slowdown in the tire market, Goodyear do Brasil has reached the conclusion that there is no need to build a new factory,'' the company said in a statement. The new plant would have produced 1.2 million tires a year, primarily destined for original equipment delivery to the Ford plant.
Goodyear operates two tire factories in Brazil with a combined daily output of 37,000 tires. The company added it would not ``discard the possibility of building the plant in the future, when market conditions improve.''
Unionization fails at Michelin Canada
HALIFAX, Nova Scotia-For the 13th time in 30 years, a collective bargaining attempt at Michelin North America (Canada) Inc.'s Nova Scotia tire plants has failed.
The most recent campaign ended when 62 percent of voting tire workers in Granton, Waterville and Bridgewater, Nova Scotia, rejected unionization in an early January election. It was the Canadian Auto Workers union's sixth attempt to organize there, a Michelin spokeswoman said.
The CAW is forbidden to apply for organization at the three Nova Scotia facilities until 2003, but the union plans to continue its campaign to organize the plants, a spokesman said.