Due to supply issues caused by the recent Gulf Coast hurricanes, Goodyear has cut output at its North American plants by 30%. The problems will affect Goodyear's nine North American plants, which make up roughly half of its worldwide production. While the company anticipates being able to fulfill its contracts for the time being, it has "force majeure" contracts with customers which allows it to drop out of an agreement if unforeseen circumstances make it impossible for the company to do so.
Goodyear's Gulf Coast chemical plants in Tejas have resumed at least partial production, much of which includes synthetic rubber. The Bayport plant is fully operational, while the Beaumont plant began to come online Friday. Glitch or major problem for the tire and rubber giant? We shall see.
Hurricane Forces Goodyear to Cut Back Production [USA Today]
Katrina Saves Auto Lobbyists Soul? [Internal]