Goodyear Tire & Rubber Co. executives are optimistic about the future of the industry and the future of the company’s brand.
“We’re not just going to go into the future. We’re going to grow into the future,” said Phillip Kane, vice president for commercial tires in North America, during the 2014 Goodyear dealer conference in Nashville, Tenn.
Kane said in an interview that Goodyear in the commercial area expects a strengthening replacement tyre market in 2014, “which will allow our replacement dealers some room to grow themselves.”
Steve McClellan, Goodyear North America president, said in the years since the Great Recession, there has been “no big snap-back in the general economy or in the tyre business.” But, McClellan said the signs are out there for a rebound, including an increase in miles driven.
“It’s not if, it’s just kind of when is it going to happen,” McClellan said. “We wouldn’t necessarily say we’re predicting you’re going to see the Big Bang in ’14, but it’s sooner rather than later … but it’s just not there yet.”
One sentiment that echoed through the speeches at the dealer conference is that all segments of Goodyear’s business are aligned; they all have one strategy.
Jack Winterton, Goodyear’s president for consumer tyres in North America, said the segments all have the same basic philosophy: “Invest in the brand. Build the brand.”
Winterton said being first with its customers is important to all segments in Goodyear.
“It’s something that we truly value, all of us,” he said.
The crossover utility vehicle market is an area that continues to grow in the industry, and Winterton said Goodyear attacks the market in a number of different ways. He said Goodyear’s Wrangler SRA and the Assurance FuelMax had double-digit sales growth combined last year, and both offer crossover utility vehicle sizes.
Many of the company’s premium tyres also have crossover utility vehicle sizes and are doing well, he said.
The original equipment market is another segment Goodyear continues to grow in, Winterton said.
“I think our hard work and what we call the “OE selectivity’ model … is going to start paying off here in the future,” he said.
The winter tyre market saw a bump up from previous years after the snowstorms of the season.
“We had a very good (winter) tire market, and also I would think our customers would say the same thing,” Winterton said.
While there is a place for all-season tyres no matter where people live because a dry climate can change to a wet climate quickly, Winterton said there is still a market for the winter tyre, especially with new vehicles.
Winterton said the Kelly brand still is a focus in the Goodyear line. Kelly mainly is aimed at the economy segment of the market and is a well-known brand that customers like, according to Winterton.
“Even though we didn’t announce anything new this year, stay tuned. We will continue to invest in that brand,” he said.
Overall, Goodyear “had a very, very good year in the Goodyear brand, and we grew greater in the marketplace among our contemporaries, so that just tells you about the value that people are willing to pay for tires out there,” Winterton said.
Source: Cleveland Business
Published: 10 Mar 2014