The entire automotive sector is experiencing turmoil, and the world is not exempt either. And tires are impacted by all these changes. When tariffs apply, the cost of raw materials skyrockets. As fuel prices increase, driving decreases, leading to less frequent tire replacements. When overall prices rise, spending $800 on a new set seems unappealing, pushing more consumers towards cheaper Chinese alternatives instead of established brands like Goodyear.
In the most recent episode of The Drivecast, Goodyear’s CEO Mark Stewart engaged in an exclusive conversation with The Drive discussing whether the company can achieve growth by selling more expensive tires to a smaller customer base, their careful stance on tariffs, the rivalry to secure lucrative contracts from automakers for factory-installed tires on new vehicles, and, of course, the blimp. Yes, there was a discussion about the blimp.
Goodyear is a well-known name, and everyone is familiar with the Goodyear Blimp, yet that visibility hasn’t shielded it from recent financial challenges. A reported net loss of $1.7 billion in 2025 and $249 million in the first quarter of 2026 have been linked to sluggish consumer demand and escalating input expenses, along with mounting competition from countries like China and South Korea. The company has had to streamline operations, reduce its workforce by thousands of jobs, and undertake a thorough self-assessment.
Stewart has acted quickly by selling off non-essential assets, realigning Goodyear’s focus towards tire production, transitioning from a regional to a unified global strategy for increased efficiency, and prioritizing premium tires and sizes.
Tires play a critical role in a vehicle’s performance and safety. They are the sole contact between your vehicle and the road. Quality tires can enhance driving experience, while poor tires can cause serious issues. Worn tires can lead to deadly accidents. Although many regard tires as mundane, can the individual responsible for revitalizing a legendary tire brand secure its future and persuade consumers to declare, “I want Goodyears?”
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Full Transcript
Joel: Welcome back! We have Mark Stewart, Goodyear’s CEO with us. Mark, I hear you are a car aficionado and even have a small collection, including a notable car that belonged to a well-known figure. Is that correct?
Mark: That’s right. It was previously owned by my dad. Hold on, that’s not what you meant, right? You’re not referring to my CJ-5. Four years ago, I acquired Aretha Franklin’s 1986 Rolls-Royce Corniche II, a striking black convertible. It’s pretty impressive, I must say.
Joel: Do you drive it around often?
Mark: Currently, I have the window lift motor partially disassembled; I can’t tell you how many months it took to solve that intricate puzzle, but I finally succeeded on Sunday by removing the old lift motor, allowing me to eventually drive it the right way, behind the wheel.
Kyle: How did you come by that? It’s not something you just happen upon, I’d guess.
Mark: There’s an interesting story there. We bought a family retirement house from a couple, one of whom was a New York fashion entrepreneur in the ’70s and ’80s who dressed many Motown legends, including Aretha. During one visit in ’89, she mentioned to him, “I need to sell this beautiful car; the seats don’t go back far enough for me.” So, he ended up buying it. After many years, he called me when he reached his early 80s. He told me, “You’re a good friend. Considering the Detroit roots, it should come back to you.” He said, “I’m shipping it to you, determine its worth and send me a check.” I was all in.
Kyle: The power of friendship! Congratulations on owning a piece of history. But, Mark, will Goodyear provide tires for the upcoming Days of Thunder movie? Joel’s the one really pushing for this question.
Joel: I need to know!
Kyle: Exclusive info here on The Drivecast.
Mark: I don’t think we’ve—I’d check with Travis. Even if we had that knowledge, it would likely be under wraps for now.
Joel: Come on, between friends, you can share with us.
Mark: However, considering the successful reintroduction of Eagle F1 into the market and its top ranking at Tire Rack, whether it’s featured or not, it’s clearly the ideal choice if the opportunity arises.
Kyle: Continuity is crucial in this culture. It would be great to see, but we’ll have to stay tuned. Now, diving into the core question, Mark: It’s been two and a half years since you stepped in to revamp the company. What factors prompted Goodyear to seek transformation, and how has the company progressed since?
Mark: Goodyear is such an iconic brand, known by everyone; people recognize the blimp immediately. However, younger demographics may not link those blimps flying at major events with the tires themselves. This mirrors how Goodyear’s iconic branding has waned over the last 20 years due to reduced marketing and advertising, especially during tougher times. Moreover, consumer engagement has evolved, and Goodyear was originally a pioneer in impactful advertising strategies throughout the decades.
Despite maintaining strong affiliations with NASCAR and endurance racing in Europe, we need to regain our footing. Goodyear has struggled to present a growth narrative. The acquisition of Cooper in 2021 following the COVID-19 crisis was a step, yet the influx of lower-priced tires from Asia has significantly impacted us. Thus, it’s vital for Goodyear to reclaim its space in the performance pool, particularly targeting modern sizes above 18 inches, where profitability lies. Goodyear had been largely entrenched in the high-volume segments, which faced intense competition from low-cost tires.
Taking on this role has been a privilege; I have a deep-rooted background in the tire industry having grown up with Dunlop, and I was tasked with the crucial responsibility to lead this transformation and steer Goodyear towards generating meaningful cash flow and profits, securing the company’s future for the next 128 years.
Consequently, we had to divest several non-core entities. Our focus should be on our consumer tire business—a segment renowned within racing and its rich history—alongside our commercial and aviation sectors, where we command over 30% of global market share. This allows us to concentrate effectively. We’ve reduced debt, improved our balance sheet health to its best in 30 years, and streamlined operations, not by simply slashing positions but by realigning the business for sustainable profitability.
Kyle: Understood. We’ll revisit motorsports and the blimp later. I want to address the layoffs; this year, you confirmed plant closures and approximately 1,700 job cuts in North Carolina.
Mark: Correct, North Carolina.
Kyle: How does the restructuring look now? Are there plans for more consolidations moving forward? Is the strategy finalized, now focusing solely on optimizing existing structures?
Mark: The past two and a half years have revolved around the Goodyear Forward initiative, particularly centered on divesting the Dunlop brand, our chemical segment, and the mining business—areas we had neglected. Investing meaningfully in a fragmented brand like Dunlop was impractical. Addressing the needs of our Goodyear family, we seriously considered the impact on generations of employees while reshaping our cost structure to meet market supply and demand. In competitive tiers—premium, second-tier, and the budget segment—the influx of cheap imports became overwhelming, making it impossible to compete effectively.
Considering our expenses and lifestyles in the Western region, competing with tires that cost only $10 to produce versus those at $85 to $89 is a huge discrepancy. Even with tariffs, this gap leaves little room for competition. While we valued the tariff measures that provided breathing space, we undertook a lot of automation, renovation, and modernization across our facilities, yet the chasm remained vast.
Joel: Mark, you’ve smoothly addressed many of our main points for discussion today.
Kyle: You certainly laid the groundwork.
Joel: You’ve covered a lot. I want to touch on your previous role at Stellantis—it’s interesting considering it’s not directly in the tire sector. Given Goodyear’s historical legacy and the generational aspect of the workforce, how do you perceive your outsider perspective in leading a tire brand that has such deep connections with its employees?
Mark: My experience extends even beyond Stellantis, Joel; I began in the tier one automotive sector with TRW, focusing on brakes, steering, seat belts, airbags, and sensors. This company had been entrenched for over 100 years too. Transitioning to FCA, which later became Stellantis, mirrored a similar legacy. The diverse experiences I’ve gathered across market growth cycles, transformations, mergers, and divestitures were directly beneficial as I stepped into the Goodyear transformation role.
Working closely not only with vehicle designers but also component parts manufacturers reflects the same consumer interaction found in tire production. Good traction and performance demonstrate our impact on daily driving experiences, like OEMs. Ultimately, our production costs are critical, as they determine our competitiveness in the market.
As I earlier mentioned, tires’ production costs comprise a significant part of our strategy and are fundamental to providing value to OEMs and the end consumer while ensuring we remain profitable. Thus, we must emphasize detail orientation—details matter in Stellantis and equally within the tire business—focusing on our mission and necessary adjustments.
Kyle: That aligns with your earlier comments about the ongoing battle against lower pricing imports. It’s a significant concern echoing throughout the automotive sector while also relating directly to tires. I’m curious to hear your honest take on tariffs: have they been beneficial for Goodyear, neutral, or counterproductive? Given that tariffs raise costs for importing raw materials and you procure some tires from non-USMCA nations, where do you stand?
Mark: It hinges on geography, Kyle. We strive to manufacture locally where feasible, within USMCA zones, Europe, and Asia, with few exceptions. Thus, most production remains in the U.S. or USMCA regions, particularly in consumer segments. Our significant U.S. footprint, paired with robust European operations, means localized tariffs targeting foreign imports typically benefit us. However, while these tariffs help distribute cost-equivalence across the board, they haven’t made a substantial difference compared to where some products originated. Recently, we’ve witnessed a pre-buy phenomenon, as distributors stocked up on lower-end items during the tariff implementation, leading to improved outcomes towards the latter part of the past year and into this year.
Moreover, Europe has recently enacted new tariffs targeting foreign products entering from Asia, specifically China, based on a comprehensive assessment by the EU Commission. It’s our hope that this will assist the market over the next 12 to 18 months until those tires find alternate routes.
Kyle: If low-cost imported tires, particularly from China, were allowed to flood the U.S. market without tariffs, would that spell existential trouble for you or the broader American tire sector?
Mark: That concern significantly motivated our shift towards the Goodyear Forward initiative. Our past model, which entertained all market tiers, faced drastic shifts over the last two decades and has worsened post-COVID. The low-end segment surged, emphasizing the urgency for Goodyear to restore its iconic status, which we’ve sought to capture through marketing campaigns like “Still,” showcasing our performance history including the lunar tires and racing achievements. We’re committed to reminding consumers of our enduring legacy and future innovations.
Transforming products to reflect modern standards has become crucial. In response to countering newer, varied tire products, we’ve recognized the necessity for swift relaunches—no longer can we let a product linger unnecessarily, as competition drives rapid changes within our market. Goodyear is tasked to elevate its value proposition for customers, encouraging them to prefer our offerings, whether Goodyear, Cooper, or Kelly products.
Joel: Certainly, our audience includes not just consumers like Kyle and me, but a wealth of industry professionals. Volume sales also stem from supplying tires to OEMs. You’re a tier one supplier; historically, you’ve had a presence on many prominent models, ensuring the Goodyear name aligns with them. Has the OEM landscape shifted since your time at Stellantis?
Mark: Upon taking charge at Goodyear, I’ve conducted a fresh review of our OEM relations as we’re primarily focused on aftermarket sales. While OEM sales account for 20-30% of our business, we’ve gained 3-5% in the last year due to successful bids and new partnerships. Building strong connections with both procurement and engineering teams of OEMs is vital.
Engaging deeply with engineering and development is crucial—whether for efficiency-influencing low rolling resistance tires for EPA standards or creating suitable tires for hybrid or EV applications. These contribute to user satisfaction as they ultimately seek tires meeting all performance criteria. Any gaps potentially disrupt Goodyear’s reputation, hence the importance of maintaining robust collaborations with both engineers and procurement teams.
Differentiating products via styling becomes integral too. It’s essential to recapture attention, and I advocate for the return of distinctive options like white-sidewall tires, setting Goodyear and Cooper apart.
Kyle: For what it’s worth, I completely support white lettering on tires. Attention is crucial today, and enhancing visibility can facilitate customer connection. A car often looks more appealing with white lettering; I think you should consider it.
Joel: We’re definitely revisiting that topic. It holds great significance. On a more serious note, let’s circle back to the ongoing competition and tire manufacturing aspects, as Kyle has inquiries regarding that.
Mark: Acknowledging the shifting balance, tariffs serve as a disruption. Tariff influences led to effective dialogues with OEMs, ultimately influencing mid-cycle adaptations. However, each industry faces pressures to manage costs. This drives our need to refine efficiency, allowing us to navigate price competition while maintaining performance outcomes.
Kyle: Speaking of local production, let’s discuss the “Made in America” aspect post-restructuring. With changing dynamics—especially given that imports aren’t disappearing—what’s the current state of domestic manufacturing and its outlook?
Mark: That’s an excellent question. We prefer producing within regions corresponding to demand. With 128 years of heritage, our goal remains localized production; it’s essential aligning ourselves with communities we serve. However, being profitable while producing low-tier tires is unrealistic. Accordingly, we have rationalized our product offerings, emphasizing a premium market focus while ensuring consumer engagement remains high.
Kyle: It’s intriguing to hear that sentiment, especially given the industry’s direction toward capturing affluent clients, seeking more tailored products. As we chase niches, are you concerned about exhausting potential buyers for premium tires, or is there enough interest in what you offer?
Mark: It’s critical to understand that Goodyear, as discussed, historically hasn’t fully captured premium opportunities, resulting in substantial missed markets. Forward-looking, we still find ample opportunities for our performance-oriented tires. Our engineering departments excel in crafting innovative designs such as the new Eagle F1 All Season, setting benchmarks in tire performance.
Should we enter the competitive arena, we’re confident in our capacity to excel. We aren’t abandoning mid-tier consumers; rather, we’re transitioning away from high-volume production in cheaper tiers, while we intend to maintain a comprehensive product array for all users.
Kyle: Including white lettering on the tires?
Mark: And yellow as well.
Kyle: Absolutely.
Joel: Kyle is eager to come back to that discussion; he’s deeply passionate. Mark, your seamless transitions between topics and points are impressive. I wanted to touch on a topic of my own; my wife points out that automotive enthusiasts may often overlook regular consumer preferences, as buying a car can be daunting for the general audience. A frequent query I hear even from non-enthusiasts is: Why are tires so expensive? Specifically, is a $200 tire genuinely twice as good as a $100 tire, or is it merely branding? This question emerges especially pertinent when competing with newer tier entrants.
Mark: There’s a segmentation at play. Enthusiasts often assess ratings, while others simply need a flat replaced; their priorities vary. It’s pivotal for us to distinguish between these different consumer profiles. We target enthusiasts seeking performance vs. casual buyers who desire reliability without needing extraordinary capabilities.
Thus, conveying the crucial safety role of tires is fundamental. Investing a little extra in quality ensures you have dependable engineering, reducing the risk of blowouts—long-lasting tread is essential, especially since most people will have sold their vehicles by the tire’s full lifespan.
Ultimately, our focus lies in accommodating different consumer bases by communicating the benefits of quality tires, regardless of their level of interest. We appreciate enthusiasts’ enthusiasm, even while acknowledging that tires may not always be highly sought after.
Joel: Recently, we updated our 1990 300ZX’s tires, and I was genuinely delighted. I revel in the experience of upgrading tires. Driving out after was a remarkable feeling: “These are quiet, these are smooth!”
But now, let’s return to the captivating topic of white walls. I’ve genuinely wondered: Goodyear maintains a distinct connection through its innovative cultural marketing. Over the years, advertising and cultural touchpoints, from blimps to track victories, have intertwined with the brand’s identity. Do you perceive that Goodyear should have been more engaged with modern cultural moments? Will we witness greater involvement in this area, especially as cultural trends evolve to become increasingly important?
Mark: Absolutely. The blimp represents a legacy—present at every major event, from sports to other significant occasions globally, synonymous with Goodyear’s presence. Sadly, we’ve pulled back from these activities and forgotten to promote our innovative products adequately. A pivotal pivot involves re-engaging with the community and reminding them of our commitment.
We marked our 100th anniversary with a campaign reaching 100 cities, emphasizing blimp presence and utilizing it as an exclusive marketing asset. Early on, we joked about using the blimp to promote tire sales, creating viral t-shirts that declared, “Blimps are cool, buy Goodyear tires.” This idea revitalized enthusiasm around our merchandise and brand identity.
We’ve actively participated in recent cultural events, associating with influencers and events like Coachella, while tying back to our core identity—demonstrating how tires transcend utility, stimulating nostalgia and excitement. Our most recent advertisement, including childhood racing memories, speaks to the excitement surrounding Goodyear. We’re launching concept retail spaces, inaugurating one in Detroit soon, to create community hubs for enthusiasts to gather, appreciate cars, and connect with the Goodyear brand in a relaxed atmosphere.
Kyle: The blimp finally made its way into our conversation! Goodyear’s nostalgic connotations are evident, and the brand carries a rich history. It’s comforting that your logo remains unchanged. Let’s keep that character in the brand; it’s refreshing amidst the trend of sterile branding.
Mark: Indeed, there have been valuable lessons learnt on that front; we wouldn’t want to lose our heritage.
Kyle: Goodyear is a brand with robust consumer interest. The blimp situation uniquely positions you within the marketplace. Notably, the industry holds a virtual monopoly on blimps, right?
Mark: To clarify, we have partnered with Grand Theft Auto for the upcoming 6 release; they are rebranding the blimp, creating another cultural touchpoint. Apologies for the detour; please continue.
Kyle: So, a lighthearted question: Do you get complimentary rides in the blimp as CEO? Can you make a call and say, “I want a blimp ride today?”
Mark: Living nearby, I can potentially catch rides, but usually, I’d reserve it for significant occasions. Otherwise, it wouldn’t reflect well on me to ask for a personal flight unless it aligned with a broader marketing purpose. However, I did manage to surprise my mom for her 80th birthday with a ride; that was memorable.
Kyle: That experience sounds incredible. If I were to take the helm at Goodyear, securing a blimp ride would be a non-negotiable part of my contract. On a more relevant note, I’m intrigued by your operational strategy regarding the blimp. Is it categorized under marketing? How do you decide when and where to deploy it?
Mark: Yes, with four blimps operational—three in the U.S. and one in Europe—these act as premier marketing assets. We’ve forged strong ties with networks, aligning ourselves with key sporting events like the NFL and PGA. We structure our presence around these partnerships to garner visibility.
We actively analyze annual event calendars and optimize its utilization to enhance marketing reach while engaging with audiences, making appearances at baseball games or major events as opportunities arise.
Kyle: So, you generate revenue from providing aerial coverage during these games?
Mark: Absolutely, generating additional revenue in collaboration with networks helps offset costs.
Kyle: It’s fascinating how your company operates blimps. If you were to present the concept detached from its historical context, it’s remarkable: you make tires and operate blimps. It’s quite the unique mixture.
Mark: Historically, we manufactured blimps, as their fabric was rubber. During World War II, we aided in patrolling and scouting missions for Allied forces. That’s part of Goodyear’s heritage.
As for Cooper, there’s an interesting parallel; they produced inflatable boats during the war, showcasing how both companies contributed to the war effort.
Kyle: That’s quite a unique backstory. Moving on, I want to discuss the rising traction of motorsports in recent years, especially in light of F1’s growth. Goodyear discontinued its involvement in F1 in 1998, although you hold the record for the highest wins as a tire supplier. Will Goodyear consider re-entering that division in the future, or are there other motorsport opportunities catching your eye?
Mark: Motorsports within our strategy is crucial. As we pivot towards performance, our mission is to become the leading provider in tires and services, showcasing our capabilities through weekly success in competitions like NASCAR, where we consistently podium. Furthermore, in endurance racing—70% of tires at Le Mans being ours—meet our ongoing commitment.
We’ve consolidated our racing teams globally, maximizing resources towards developing competitive product lines while identifying potential entry points into racing segments from which we’ve been absent. Recently, feedback from various teams has been exceptionally positive, reinforcing that Goodyear is once again a competitive player.
Joel: Goodyear’s strong ties to motorsport are evident, aiming to enhance the philosophy of “race on Sunday, sell on Monday.” I am curious about what technological advancements have emerged from your collaborations within racing communities, particularly surrounding NASCAR.
Mark: Certainly. Our advanced mobility initiatives leverage technology to develop intelligent tire systems, known as SightLine, observed across our race venues every weekend. This allows us to transition advancements made during races into commercial production, benefiting OEMs and consumers alike.
The SightLine technology enables original tire pressure monitoring systems while offering advanced features such as tread wear tracking, which connect to vehicle dynamics systems, helping maintain vehicle control during rapid air loss scenarios. This innovation promises to enhance driver safety.
Kyle: It’s interesting you highlighted SightLine technology. I’ve approached tire smartness with skepticism in the past; many claim to offer smart tire concepts, but I’ve questioned their value beyond conventional tire pressure monitoring. What’s your perspective on this tech’s future, particularly in context to broader societal conversations about privacy and data?
Mark: I envision significant potential in smart tire technology, especially for safety. While concerns about data privacy do resonate, much of the tech can be localized, particularly for commercial applications. For consumer-focused products, the primary objective is passenger safety—ensuring drivers receive critical alerts to prevent loss of control due to unforeseen circumstances.
While we’ve discussed product design complexity in airless tires, there are valid use cases for future deployments. The intersection with driverless technology offers a beneficial application for airless tires, though it rides the fence with smart tire indicators.
Joel: That sounds like a solid marketing premise: “Did you prevent an accident? Time for new tires!” Just a quick pitch for you!
Kyle: We’re brainstorming award-winning ideas here. One last query before we wrap up: What’s the likelihood that airless tires will become viable? Are they just experimental?
Mark: Let’s consider that a future curiosity. Airless tires are fascinating; I’ve seen them in demonstrations, capturing attention. While they showcase potential utility, especially for autonomous vehicles, significant engineering challenges remain, making them complex yet intriguing. Ultimately, smart sensing technology will likely take priority in our upcoming developments.
Joel: Mark, I appreciate your time and insights; we’d love to have you back in the future. It’s been an enjoyable discussion.
Kyle: We’re merely scratching the surface here.
Joel: Thanks for joining us today.
Mark: Thank you both. It’s been a pleasure.
Kyle: Thank you, Mark.
**Goodyear’s Approach to Compete with China’s $12 Tire Market**
In recent years, the global tire sector has encountered considerable obstacles, particularly due to the emergence of budget-friendly rivals from China. With prices dropping to as low as $12 per tire, manufacturers from China have disrupted conventional pricing models and market dynamics. In response, the Goodyear Tire & Rubber Company, one of the leading tire manufacturers in the globe, has executed a multifaceted strategy to uphold its competitive advantage and market share.
**1. Investing in Innovation and Technology**
Goodyear has prioritized innovation as a pivotal element of its approach. The company allocates substantial resources to research and development to engineer high-performance tires that prioritize safety, durability, and fuel efficiency. By concentrating on progressive materials and smart tire technology, Goodyear aims to distinguish its products from lower-cost options. Innovations such as self-sealing tires, run-flat technology, and sensors for real-time performance data are representative of Goodyear’s enhancements to its product line.
**2. Positioning Premium Products**
Rather than primarily competing on price, Goodyear has chosen to establish itself within the premium market segment. The company highlights the quality and performance of its tires, catering to consumers who value safety and reliability over mere cost. This allows Goodyear to sustain elevated profit margins and foster brand loyalty with consumers who are ready to invest more for superior products.
**3. Broadening Global Presence**
To counter the competitive pressure from Chinese manufacturers, Goodyear has been emphasizing the expansion of its global footprint. This includes increasing production capabilities in strategic locations and penetrating emerging markets with rising demand for tires. By establishing a presence in regions experiencing growth in automotive sales, Goodyear is able to reach new customer demographics while lessening dependence on saturated markets.
**4. Pursuing Strategic Collaborations and Partnerships**
Furthermore, Goodyear has sought strategic partnerships and alliances to bolster its competitive stance. Collaborating with automotive manufacturers and tech firms enables Goodyear to seamlessly integrate its tire solutions into new vehicle designs while benefiting from shared knowledge and expertise. Collaborations with electric vehicle makers, for instance, allow Goodyear to develop specialized tires tailored for this burgeoning market segment.
**5. Committing to Sustainability Initiatives**
As concerns about the environment gain prominence among consumers, Goodyear has made commitments to sustainability initiatives that resonate with ecologically conscious buyers. The company invests in sustainable materials and processes, aspiring to minimize its carbon footprint and promote recycling. By matching its brand with environmental responsibility, Goodyear aims to appeal to customers who prioritize eco-friendly products, further distinguishing itself from low-cost competitors.
**6. Enhancing Distribution and Customer Interaction**
Goodyear is also concentrating on refining its distribution channels and customer interaction strategies. By enhancing its online presence and e-commerce functionalities, the company intends to connect with a broader audience while streamlining the purchasing experience. Additionally, Goodyear is investing in customer service and support to forge robust relationships with consumers and foster brand loyalty.
**Conclusion**
In light of the competition posed by China’s $12 tire market, Goodyear’s strategy revolves around innovation, premium positioning, global expansion, strategic partnerships, sustainability, and customer engagement improvement. By concentrating on these fundamental areas, Goodyear aims not only to survive but thrive within a challenging market landscape, ensuring long-lasting success in the global tire industry.