Goodyear integration 'on track' as exec departs

AKRON — Goodyear continues to make progress on its integration of Cooper Tire & Rubber Co., while confirming the recent departure of an executive who had led the integration process.

Goodyear said customers already have a single point of contact at the combined company, and that customers can expect to do business with one operating system after the completion of its North America ERP migration, which is set to be complete on Nov. 28.

A Goodyear spokesperson said the Akron-based tire maker "is on track to realize our previously announced synergies by mid-2023. This progress has reinforced our optimism about the growth opportunities a fully combined Goodyear and Cooper company will offer our customers."

Goodyear closed the $2.5 billion cash-and-stock deal to purchase Findlay, Ohio-based Cooper on June 7, 2021. The combination brought together, at the time, the world's No. 3 tire maker, with global sales of $11.4 billion in 2020, with Cooper, the No. 13 tire maker with $2.5 billion.

Meanwhile Ryan Patterson, named chief operating and integration officer for Goodyear's Americas in October 2021, left the company, effective Oct. 31, "to pursue the next chapter in his career," the spokesperson said.

"We are grateful for Ryan's service to the company and wish him all the best."

Patterson, who had been with Goodyear since 2002, was named to oversee integration in both the Americas and global units in the newly created position.

Goodyear has not named a replacement, nor commented on whether one will be named.

On June 7 of this year, the one-year anniversary of the merger, Patterson released a letter, promising that both Goodyear and Cooper dealers soon will have "access to a single operating system, combined sales force and an integrated brand and product portfolio."

At that time, Patterson said the Akron-based tire maker was targeting early 2023 for the "full value" of the integration. He reminded dealers how the company has continued to invest in its brands, including:

• Building the first replacement tires designed for electric vehicles (ElectricDrive GT and the Endurance RSA ULT);
• Expanding Cooper's Mastercraft-brand portfolio with the addition of two new lines; and
• Producing more sustainable commercial tires by replacing some petroleum content with soybean oil.

In Goodyear's recent third quarter results conference call, Goodyear CEO, President and Chairman Rich Kramer said the addition of Cooper continues to improve Goodyear's bottom line.

"The synergies of the Cooper Tire combination during the quarter totaled approximately $25 million, continuing to trend upward compared with second quarter benefits of approximately $20 million," Kramer said. "We continue to expect synergies to reach an annual run rate of $250 million by mid-2023."