A debt of $4.5 billion makes Goodyear vulnerable to changing interest rates and puts pressure on the success of the North American Tire segment for a necessary increase in cash flow.
Goodyear's 2006 transfer of its pension obligations to a privately administered fund considerably lightened the company's balance sheet. Nevertheless, this new labor agreement does not eliminate the risk of another strike or work slowdown by Goodyear's highly unionized workforce even if the company needs to cut costs or compensation in the face of the recent global economic slowdown.