AKRON — Goodyear is planning to take pre-tax charges of $80 million to $90 million over the coming few quarters to cover costs associated with closing a plant in England and consolidating motorcycle tire production at a plant in France, according to a filing with the Securities and Exchange Commission.
The restructuring plans are expected to be completed by year-end 2023. Separately, Goodyear has budgeted $16 million for converting its plant in Montlucon, France, solely to motorcycle tire production.
Goodyear disclosed Oct. 13 it had begun the process of closing the Cooper Tire & Rubber motorcycle and race tire plant in Melksham, England, citing the impacts of an increasingly challenging economic environment for the move.
The move will affect roughly 350 employees in the United Kingdom.
Goodyear said $60 million to $70 million of the charges are related to personnel and exit costs, with the remainder representing non-cash charges primarily for accelerated depreciation and other asset-related charges.
The company has booked $32 million of pre-tax charges in the third quarter of 2022 and expects to record an additional $10 million of pre-tax charges in the fourth quarter of 2022 related to this plan.
The majority of the remaining charges will be recorded in 2023. A majority of the cash outflows associated with this plan will occur in 2023.
