Goodyear Tire & Rubber Co. announced it’s expanding its cost savings plan and will invest more capital in the Latin American, Eastern European and Asian markets, according to a company press release.
The company plans to increase its cost cut target to more than $2 billion by 2009, compared with a previous target range of $1.8 billion. Cuts will be mainly focused on supply chain efficiencies and back office operations.
Goodyear also plans to invest up to $500 million to relocate and expand a manufacturing plant in China, in an effort to increase production of consumer and commercial tires in the Asia-Pacific region.
In addition, the company plans to spend $500 million-$700 million over the next five years to increase production and cost efficiency of four U.S. manufacturing plants.
The company expects total capital investments of about $1 billion-$1.3 billion annually through 2010.