Goodyear Tire & Rubber Company is in talks with the United Steelworkers Union to close its Fayetteville, North Carolina factory by the end of 2027, potentially impacting over 2,100 workers. The company cites a challenging environment with weak consumer demand, lower OEM purchasing, and higher raw material costs as reasons for the closure, aiming to strengthen its competitive position. This decision comes despite extensive efforts to make the 2-million-square-foot plant competitive.
Goodyear Tire & Rubber (NASDAQ:GT) stock dropped to a new 52-week low after Wall Street Zen downgraded it from "hold" to "sell." Despite beating earnings estimates in its latest quarterly results, revenue declined by 8.7% year-over-year, and the company continues to face profitability challenges. The stock now holds an average rating of "Reduce" and an average price target of $8.54 among analysts.
Goodyear CEO Mark Stewart anticipates reduced tire demand due to rising gas prices leading to fewer vehicle miles traveled. The company's CFO, Christina Zamarro, noted the impact of oil prices on raw material costs, particularly synthetic rubber inputs. Goodyear also expects a $46 million tariff refund and reported an adjusted loss per share of 39 cents for Q1 2026.
