Goodyear Tire & Rubber Company (GT)

Add a New Bears Reason Company: Goodyear Tire & Rubber Company (GT) Current price: Headline: (100 character max) Analysis: Cancel 57% agree 7 votes   Hugely underfunded pension obligation Created when NYSE:GT was $6.48 | Edit | History Goodyear's pension represent a huge cash call on the company over the next few years, a problem which has been greatly exacerbated by the stock market decline during 2008. (100 character max) Cancel 0% agree 0 votes   Reliant on unionized labor Top Contributor: J.D. Thornton | Created when NYSE:GT was $36.25 | Edit | History Goodyear's 2006 transfer of its retiree medical obligations to a privately administered VEBA 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. (100 character max) Cancel 0% agree 0 votes   Huge debt load Top Contributor: Michael Luddy | Created when NYSE:GT was $36.25 | Edit | History 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. (100 character max) Cancel 33% agree 3 votes   Goodyear still has substantial excess, high cost, inefficient manufacturing capacity in USA Created when NYSE:GT was $6.45 | Edit | History It costs $200 to $500 million to close a tire plant! (100 character max) Cancel 0% agree 1 votes   Goodyear trails it's primary competitors badly in developing key Asian markets Created when NYSE:GT was $6.47 | Edit | History Goodyear has invested far less in China and India in recent years compared to Michilen and Bridgestone. (100 character max) Cancel

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