Goodyear Fights to Survive: Tire Giant Burns Cash in Turnaround Battle

Goodyear, one of the world's most famous tire brands, is in the middle of a difficult rescue mission. Its CEO, Mark Stewart, is trying to modernize the 128-year-old company — but the numbers show just how tough that job is.

Stewart's plan is called "Goodyear Forward." The goal is to cut costs, pay off debt, and make the company more attractive to investors and customers. But the company is spending a lot of money ("burning cash") to make these changes happen.

Here are the key numbers:

• Stock price: Down more than 50% since Stewart became CEO in January 2024, closing recently at $6.35 (down 27% this year).
• Debt: More than $7 billion (money the company owes and must pay back).
• Net loss: $453 million in the first half of the year (a net loss means the company spent more than it earned).
• Operating margin: Just 1.6% — this measures how much profit a company keeps from each dollar of sales. Goodyear wants to reach 10% but hasn't gotten there.
• Capital expenditures (capex): About $725 million this year — money spent on equipment, factories, and long-term improvements.

Why is Goodyear struggling? Several reasons pile on top of each other:

• Tariffs (taxes on imported goods) that raise costs.
• Rising raw material prices, partly due to conflict in the Middle East.
• Cheap competition from Asian tire makers who can sell tires for as little as $6–$10 to produce.

Stewart says Goodyear won't compete on price. Instead, it's moving toward premium (higher-priced, higher-quality) tires with better profit margins, and launching over 1,600 new products this year. One bright spot: its Asia-Pacific region earned a healthy 12.7% operating margin.

The bottom line: Goodyear is making progress on its plan, but cash burn is expected to continue into 2027. Investors and analysts are cautious — the stock currently carries a "hold" rating, meaning experts suggest neither buying nor selling for now.

This is an AI-generated summary. Read the original article at: https://www.cnbc.com/2026/08/29/goodyear-turnaround-cash-debt.html