AKRON, Ohio — Goodyear announced Monday it will sell its Off-The-Road tire business to Japanese tire maker Yokohama for $905 million, and separately said it is moving 175 Akron jobs to Costa Rica.
Both moves are part of Goodyear Forward, a plan announced in November to transform the tire company into being more profitable.
Goodyear said the sale of its Off-The-Road tire business is expected to close in early 2025. This segment of Goodyear makes tires that outfit large vehicles in the mining and construction industries. These tires are made to drive over rock and gravel and can be roughly 8 to 13 feet in diameter.
Yokohama was established in 1917 and is headquartered in Japan, but has U.S. factories in Salem, Virginia, and West Point, Mississippi.
“The sale of the OTR (Off-The-Road) business marks an important milestone as we continue to execute against our Goodyear Forward transformation plan,” said Mark Stewart, Goodyear’s CEO and president. “We are grateful to our OTR colleagues who have driven the success of the business and are committed to working closely with Yokohama to ensure a smooth transition for customers and associates.”
Goodyear said it will still make tires for the U.S. military and other defense applications. Goodyear will also manufacture some tires for Yokohama for up to five years after the sale closes.
According to a financial form filed with the SEC, the sale includes a Goodyear manufacturing facility in Tatsuno, Japan, and a retread facility in North Bay, Canada.
Akron jobs
In another move related to Goodyear Forward, the company said 175 positions would move from Akron to a new Goodyear location in Costa Rica, effective in early 2025.
Goodyear spokesman Doug Grassian said these roles support corporate functions and Goodyear’s business segment covering North and South America.
Grassian said the move resulted in layoffs.
Announced in November, Goodyear Forward is a plan to transform the tire company that came on the heels on activist investor Elliot Management winning seats on the company’s board. The same day Goodyear Forward was announced, former Goodyear CEO Richard Kramer announced his retirement.
Part of the plan’s objectives was selling the Off-The-Road business. The company has also said it will look at the possibility of selling the Dunlop brand and its specialty chemicals business.
Goodyear started its Off-The-Road business in 1934 when it introduced its first earthmover tire, according to the company’s website.
