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Goodyear closing 92 Stores and will Cut 600 Jobs?


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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

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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".

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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.

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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.

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  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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