Goodyear closing 92 Stores and will Cut 600 Jobs?

[autoguy]

Goodyear closing 92 Stores and will Cut 600 Jobs? Did anyone hear about this? They must be struggling.

 

"Goodyear Tire & Rubber Co. announced that they will be closing down 92 of their retail stores across the United States. They will be laying off 600 full and part time workers due to the slow economy. Goodyear has a total of 742 stores in the United States.

 

The spokesperson for the company said that because of the economy, people are driving less and it has affected how often they are replacing tires and buying new cars. They are planning on closing stores that are under performing.

 

The company has reported income increases in the second quarter to $75 million which the year before was $56 million. Their revenue also rose by 6.5 percent to $5.24 billion."

 

http://www.youtube.com/watch?v=tW7BJ4F3qjw

[Joe Marconi]

It's survial of the fittest. In these changing times, the cream of the crop will rise and become the champions.

[allimports]

It's survial of the fittest. In these changing times, the cream of the crop will rise and become the champions.

 

 

They are just dropping their low hanging fruit. Most of teh locations are being picked up by independent repair shops or ind. goodyears.

[Joe Marconi]

What kind of an impact do you see this will have to the aftermarket???

[Tom Ham AutoMN.info]

What kind of an impact do you see this will have to the aftermarket???

 

For the time being it seems to me that demand is dropping faster than the number of shop which are closing.

 

From what I am hearing from around the country the number of shop closings could accelerate rapidly due to vast numbers of empty bays...shops are learning a definition of "slow".

[Joe Marconi]

What we are going to see (and probalny seeing now) is survial of the fittest. The weak shops will close, they will not be able to compete. This, in the long run, will be good for the shops that remain.

[ccac484]

Has there been a list released as to what shops will be closing?

[Joe Marconi]

Not that I am aware. I read in one of the trade magazines that the stores that will be closing are company stores that are just not profitable.

[ccac484]

Not that I am aware. I read in one of the trade magazines that the stores that will be closing are company stores that are just not profitable.

[ccac484]

I am not sure if the stores are made aware yet either, know a tech at a local GY that is has lost at least 50% of their business and recently laid off two techs. They are trying to regain market share with customer appreciation day each and every Saturday and 18.95 OLF. Even with this delayed marketing onslaught each and every time I drive by (3 times daily est) 0 two 2 cars in the shop. The manager even had the audacity to contact me and ask what my labor rate was? Its posted, feel free to visit any time and take advantage of the free services we offer.

[Joe Marconi]

Miles driven per motorist has been on the decline due to the rise in fuel. Because of this car counts are down across the country. This probably hurts the Goodyear accounts and other similiar stores that rely on a high car count to remain in business.

[Tom Ham AutoMN.info]

Miles driven per motorist has been on the decline due to the rise in fuel. Because of this car counts are down across the country. This probably hurts the Goodyear accounts and other similiar stores that rely on a high car count to remain in business.

 

Considering the massive number of miles driven which could be defined as optional, the potential for this number to see a huge drop would seem quite high. Another shop owner told me recently how one of his regulars came in for some service in August. He normally drives 1,000 miles or so a month. He decided to make some major changes in his driving habits in a number of ways. The result was that the car had clocked 300 miles since April! That may be extreme, but I believe that many drivers could reduce their driving by thousands of miles each year.

[Joe Marconi]

People will no doubt changes their driving habits, but only so far. Most people who live in suburban areas with no mass transit must get to work. They may give up that weekend trip or plan errands better, but they will use their car. Many of my customers have purchased smaller cars and parked their pickups and SUV in the driveway. We also need to be concerned about the winter months. People will adjust their budgets accordingly. People in the northern areas have to eat, keep warm and get to work. They will have to cut some luxuries out of their lives, at least for now.