AKRON — Goodyear's Venezuelan subsidiary, CA Goodyear de Venezuela, is ceasing production at its 62-year-old factory in Valencia, citing economic conditions and the negative effects of U.S. sanctions on Venezuela.
Goodyear "deconsolidated" this company in 2016, stating at that time that "evolving conditions" in Venezuela — including currency exchange control regulations and continued reductions in access to U.S. dollars — had restricted the company's ability to pay dividends and royalties and to settle liabilities.
Bridgestone Corp. and Pirelli & C. S.p.A. made similar moves at about the same time.
Goodyear said the firm's goal "had been to maintain its operations, but economic conditions and U.S. sanctions have made this impossible."
The company thanked the Goodyear-Venezuela employees for their contributions and commitment "under very difficult conditions."
Goodyear did not disclose what, if any, severance settlement it might have reached with workers there.
At last report, Goodyear employed 750 at the Valencia plant, which was rated at 12,000 car, light and medium truck tires a day.
Venezuela accounted for one-third of Goodyear's Latin American revenue and contributed $119 million in segment operating income as recently as fiscal 2015.
Pirelli did not identify the investors nor disclose any financial information, but did say the disposal would have no financial effects on the group. The agreement calls for employment continuity at the 28-year-old factory.
Bridgestone divested its business unit in Venezuela — Bridgestone Firestone Venezolana C.A. (BFVZ) in 2016 — to the Corimon Group, a Venezuelan capital investment enterprise.
Bridgestone Firestone Venezolana operated one tire plant, in Valencia, that opened in 1955 and produced passenger, light and medium truck tires, with nearly 1,300 employees.