NASCAR Fans Take Shots at Goodyear’s Desperate $2 Billion Attempt To Streamline Business Endeavors

With the exit of their long-time CEO, Goodyear is set to make some big changes around how they go about their business. If recent reports are to be believed, the company has faced financial difficulties of late. As a result, the company is set to sell off $2 billion worth of assets to pay off its debts and streamline its business model. Given the mixed feelings NASCAR fans have about the tire manufacturer, it did not take them long to get on Goodyear’s case.

This news comes as Richard J Kramer, the company’s Chairman, CEO, and President, communicated his decision to step down in 2024. Kramer has served at the helm of the tire manufacturer since 2010 and in that time, Goodyear has enjoyed some of its best years in history.

Goodyear has faced a tumultuous few months this year

It was under Kramer’s leadership that Goodyear evolved into a tech-driven mobility company. NASCAR’s official tire partner also enjoyed the five highest years of annual segment operating income in the company’s history during that time. However, months after settling with activist investor Elliott, the long-time CEO is set to step down and Goodyear is making some massive changes.

Elliott Investment Management is one of Goodyear’s biggest investors and they took three seats on the board, as was announced in July. The activist investor has a history of taking board seats at companies (eBay and Twitter). With Goodyear lagging behind its rivals and in a difficult financial situation, the company was advised by Elliott to sell its stores, restructure the board, and assess its operations.

Goodyear has been facing issues from Chinese competitors selling similar products at much cheaper prices and has also come under pressure from regulators over pollution concerns.

In a bid to reduce costs in the Europe, Middle East, and Africa (EMEA) region, the company is shutting down two tire plants in Germany which will reportedly affect 1750 jobs. The factories in Fulda and Furstenwalde are scheduled to close by the end of 2025 and 2027, respectively.

Apart from tire manufacturing, Goodyear runs more than 1000 retail locations. Goodyear declared last week that it will look into “strategic alternatives” for its off-road equipment tire business, Dunlop brand, and its chemicals business.

However, as far as NASCAR fans are concerned, they took the opportunity to bash the tire manufacturer on Reddit.

NASCAR fans pounce on tire manufacturer’s case after recent announcement

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One fan suggested that the assets Goodyear was attempting to sell off were just the used tires from the 2008 Brickyard 400. “Calm down, it’s just all the used tires from the ‘08 Brickyard 400,” the fan commented.

Another user sarcastically commented: “They didn’t all blow out?” asked another user.

With this announcement, some fans began speculating about the company’s future in NASCAR. As one user suggested alternative tire suppliers, another said that Pirelli was going to have a monopoly in motor racing.

“Sooooo is BFG gonna be the tire of nascar then? Run KO2’s? Maybe mud terrains?” asked a user.

“Pirelli is going to try to become the only racing tire in the world,” responded another.

One fan sarcastically said that Goodyear would now see a higher sales percentage of coffee tables while another alluded to the company going against Hoosier Racing Tyres in a business war.

“I foresee a sharp uptick in the number of Goodyear coffee tables over the next year,” one fan commented.

“Goodyear/Hoosier Tire Wars 3? & Knuckles,” wrote another.

Goodyear seems to be navigating through a period of uncertainty at the moment. Will selling off $2 billion worth of assets prove to be a good move in the long term? Let us know your thoughts.