Goodyear shutters Venezuela factory

17th December 2018 | 0 Comments
 

Goodyear Tire and Rubber has ceased tyre production Venezuela. In a statement the company said the local economy and US sanctions were behind halting production:

“Goodyear-Venezuela has made the difficult decision to stop producing tyres. Our goal had been to maintain its operations, but economic conditions and US sanctions have made this impossible. We appreciate and thank the Goodyear-Venezuela associates for their contributions and commitment under very difficult conditions.”

By closing down production, the company has ended the major losses it has endured in recent years as the Venezuelan currency, the bolivar, devalued against the dollar. In order to insulate itself from this problem, Goodyear deconsolidated its Venezuelan subsidiary in 2015.

The factory, which carried on running with a staff of around 1100 since 2015, officially closed on 10 December 10. Goodyear follows Pirelli in ending tyre production in Venezuela.

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Category: Company News, International News