Interview to Bob Keegan, Chairman, President and CEO of The Goodyear Tire & Rubber Company

Bob Keegan, CEO de Goodyear.

Bob Keegan (BK): We’ve had many.  One of our best successes has been the improvements made to Goodyear’s new product engine, which now is the best in our industry. The speed at which we can develop and commercialize new customer focused products is unmatched. One of our most difficult challenges has been the record high raw material costs faced not only by Goodyear but by the entire industry.

PA: As of February 1st, Europe, Middle East and Africa will become a new business unit for Goodyear and the second largest region only after the US. What does this mean? How does this new business unit change Goodyear’s business concept?  

BK: Our new EMEA region recognizes the similarities and synergies between our previous European Union region and Eastern Europe, Middle East and Africa.   Combining these two regions to take advantage of those similarities and synergies will in time, improve our overall competitiveness in these markets.

PA: Throughout 108 years of Goodyear’s history we have seen interesting environmental proposals, the three “Rs” principle (reduce, reuse and recycle). What could you tell us about the outcome of this principle relating to current products, facilities and research?

BK:  Historically, Goodyear has spent significant time and effort to reduce the amount of waste it generates.  It focuses on improving materials and processes, and minimizing the amount of materials that aren’t used in final products.  Goodyear’s principle essentially says that when the company is not able to eliminate waste or reuse the material on site, it recycles the material for another use or for energy recovery.

In late 2006, Goodyear made a business decision to eliminate all waste disposed in landfills by the end of 2007.     

Manufacturing facilities around the world embraced the challenge.  By mid-year, Goodyear’s chemical operations achieved total zero waste to landfill and, at the end of the year, manufacturing plants in Western Europe, Latin America and North America had joined an elite list of Goodyear facilities dedicated to protecting the environment.

PA: In 2005 you carried out the “No one gets hurt” program intended to achieve a world class workplace safety. What was the outcome of this program? Will it continue?

BK:  In 2005, we set an aggressive goal – to reach an OSHA incident rate of 1.0 or less within three years – and have worked hard toward that goal.  In three years, we have cut our OSHA incident rate by almost half.  We’re improving, driving our incident rate down, yet we still can do more.

We continue to hold our industry’s safety leadership position.  Our initiatives are focused to drive continuous improvements.  We remain committed to comply with all local rules and regulations everywhere we do business. 

PA: The introduction of the Fortera TripleTred in Mexico last year has opened a new option for automobiles and SUVs. How have Mexican consumers received this new technology, which you described as “three tires in one”?

BK: The innovative TripleTred technology which incorporates three distinct tread zones for different conditions, has been widely accepted in Mexico. Due to the success of TripleTred, we also launched the same technology in Mexico for SUV under the sub-brand name “Fortera”, and our portfolio for the passenger market is very strong.

Our excellent market positioning is the result of a winning combination: excellent product and a vast and solid distribution network in Mexico and Latin America. We provide full technical assistance and guarantee through our service and support programs.

PA: What are the new products and services that will be launched this year?

BK:  I wouldn’t want to disclose our new product plans at this time.  However, I can tell you that we will continue making great tires in all segments of the market, focusing on our core businesses: Consumer and Commercial Products.  We will be making relevant announcements for Eagle ResponseEdge and Eagle F1 in the consumer segment, and the 600 Series truck tire in commercial.

PA: The media have been constantly changing, even with presidential campaigns. Where is the emphasis being placed in its advertising campaigns? How is it relating to its current clients and how does it intend to reach new users of Goodyear tires?

BK: Our marketing departments around the globe are continuously evaluating the consumers’ preference of both traditional and new media and incorporating a mix of media to reach consumers. I wouldn’t want to be specific about our future strategy because of competitive concerns.

PA: A recession is being expected in the US. What is your major concern thereon? How would a recession impact Goodyear worldwide and in Mexico? What would the scenario be in Mexico upon such a recession in the US?

BK: Despite the talk, economists aren’t yet in agreement whether the US will see a recession and, if so, how severe it might be. The changes we have made over the past four years around the world position us better to withstand a recession than ever in our past.  Our balance sheet is considerably stronger and our richer product mix helps insulate us from economic slowdowns. We are staying calm, and taking the necessary steps to deal with any eventuality.

PA: Oil prices have reached unprecedented levels, even hitting $100. How does this affect production and tire pricing? How does this affect Goodyear?

BK: Oil derived products are important raw materials in the tire industry, we have been successful offsetting this record high costs through price and mix improvements for several years.

PA: Finally, Bob, we know that Goodyear is the Exclusive Tire Supplier of  NASCAR until 2012. But, tell us, will be see Goodyear tires used in other competitions, like in F1?

BK:  We are very excited about our ongoing relationship with NASCAR and we take note of the very successful NASCAR race each year in Mexico City. We also compete in other racing series around the world. We continue to evaluate all types of motorsports globally and make decisions accordingly.

PortalAutomotriz.com agradece las facilidades otorgadas en la elaboración de esta entrevista a:
The Goodyear Tire & Rubber Company
Bursons Marstellers