Goodyear: Capitalizing on Spring Cleaning by Offloading $2bn in Assets
A century can command a significant amount of ‘rust’ to clean up – a reality not lost on Goodyear Tire & Rubber. In an unexpected pivot, the tire manufacturing giant announced plans to offload $2 billion of assets. This clean-up act aims to streamline its business operations and chip away at its debt margins.
Support for these moves came from none other than the board’s latest member, Elliott Investment Management. These strategic adjustments resonate with similar activities enacted by aging industrial titans, notably General Electric and 3M, who have undertaken their restructuring.
However, Goodyear’s interests don’t solely rest on tire manufacturing. The company holds the reins of over 1,000 retail locations. Goodyear plans to carve off a chemicals business, amongst other divisions, to trim down this vast network.
Yet, the most substantial shake-up may loom on the horizon – CEO Richard Kramer, who’s been at the helm for 14 years, is stepping down. As Goodyear tidies itself, an interesting question arises – could it prove more valuable in pieces? For the detailed insight, visit [here]
The Staff Guy, age 22, is navigating adulthood with a blend of dedication and humor. Despite his 18-hour workdays, he often finds himself humorously searching for his socks. A racing reporter with a zest for cars and storytelling. Connect with him on Twitter: @The_StaffGuy