AKRON (Oct. 3, 2005) — Goodyear's tire production in North America has been reduced temporarily by about 30 percent as a result of raw materials supply shortages following Hurricane Rita.
Company officials said, however, that no deliveries to customers have been impacted to date, and the tire maker said it is in discussions with customers to determine priority product needs.
“We are sensitive to our customer needs and are working diligently to meet their requirements,” said Christopher Clark, senior vice president of global sourcing.
Goodyear expects to increase production as the raw material supply situation improves in the coming weeks.
“At our present production and inventory levels, we currently anticipate that we have the ability to meet our obligations,” Mr. Clark said in a statement.
Goodyear's synthetic rubber plant in Beaumont, Texas, resumed partial production Sept. 30, Goodyear added. Full operations will resume when utilities are restored.
Goodyear said it is still assessing the financial impact of Hurricane Rita and its aftermath. Much of that impact, though, will likely come from higher production and raw material costs as well as higher transportation costs, the effects of which will be felt in the third and fourth quarters.