NEW YORK, February 10: Tyremaker Goodyear Tire & Rubber Co said on Monday new technologies to make manufacturing more efficient and tires more durable will enable it to almost double its size in five years.At a news conference in New York, the company said the new technologies will cut production cycles by 70 per cent, increase worker productivity by 135 per cent, and reduce labour input by 35 per cent.
It said it aimed to generate $20 billion to $23 billion in sales within five years as a result.
Goodyear, which obtained some 75 US patents for the technologies, said it planned to gradually introduce new manufacturing techniques for forming and shaping basic materials at its 85 factories around the world.
In an interview, Goodyear's chief executive, Samir ``Sam ''Gibara, said the company had already used the new processes to make tires in two pilot plants at undisclosed locations in North America and Europe.
He could not say how long it would take to convert all of Goodyear's plants, only saying``it is being done progressively.''
While the new techniques for forming and shaping the raw materials that go into tires mean Goodyear needs 35 per cent less labour to make a tire, Gibara said the company would not cut its 100,000 work force by 35 per cent over five years.
Gibara outlined an ambitious five-year plan to almost double Goodyear's revenues to $20-23 billion from $13 billion now. The company will aim to return 6.5-7.0 per cent on its sales, up from 5.6 per cent in 1997, he said.
The new manufacturing process should increase Goodyear's annual tire sales at twice the industry's rate of 2.5 per cent, excluding sales gains through acquisitions, Gibara said. The company's worldwide tire sales increased 5 per cent last year and 5.4 per cent in 1996.
In addition, Gibara aims to keep selling, administrative and general expenses below 12 per cent of revenues, down from 14.4 per cent of sales last year. He also said he expected to keep the company's debt level at about 30 per cent of equity, withtemporary fluctuations for acquisitions, and that the company would keep on paying shareholders about 25-30 per cent of its prior year's earnings.
Gibara still has high hopes for the company's so-called ``flat-run'' tire, which allows drivers to continue travelling for 50 miles at 55 miles an hour after their tires are punctured.
The tire, which sells for about 10 per cent more than a regular tire, has one problem -- drivers need to install a $300 device that tells them when their tires are blown.
``In April we're going to provide the answer with a poor man's sensor of $99,'' Gibara said, adding he hopes to drive the device's price tag further down in the future.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
