Lawton Goodyear plant idled as production suspended

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  • Lawton Goodyear's production suspended
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OKLAHOMA CITY – Good- year’s tire plant in Lawton reportedly was idled over the weekend as part of the company’s plan to suspend production at all of its manufacturing facilities in North and South America “through at least April 3 or until further notice,” Goodyear Americas President Steve McClellan announced.

The “phased shutdown” is “in response to the sudden decline in market demand resulting from the rapid spread of the COVID-19 pandemic,” McClellan wrote.

Suspension of manufacturing operations will protect the company’s “associates” and “positions us to navigate the sudden decline in market demand, leverage our exist- ing inventory to serve our customers, and preserve the long-term health of our business,” McClellan explained.

The U.S. stock market has been on a roller-coaster ride of late as the global economy has virtually ground to a halt in an effort to rein in the virus. Goodyear’s stock commanded $16.60 per share when the coronavirus pandemic began in December, but had plummeted by two- thirds to $5.69 a share on the NASDAQ at closing time March 20.

MOST U.S. AUTO PLANTS CLOSING TEMPORARILY

Most auto plants in North America announced plans recently to close, at least temporarily, because of concerns about the spread of the coronavirus.

Toyota, General Motors, Ford, Honda, and Fiat Chrysler announced they plan to shut down their factories in the Detroit, Mich., region. The closures are expected to span a few days to more than two weeks, and most automakers reported they would have to evaluate the spread of the coronavirus before reopening.

Honda said it would be closed this week, and Nissan said it would close its U.S. factories through April 6. Toyota plants will close Monday and Tuesday but reopen Wednesday after a thorough cleaning, the company said.

Hyundai suspended production at its Alabama plant last Wednesday after a worker tested positive for the virus; production will resume after a health and safety team believes the plant has been sufficiently disinfected, company officials said.

Goodyear tires are original equipment for many makes and models of vehicles, including General Motors and Honda.

Goodyear will “closely monitor the local conditions surrounding its warehouse and distribution operations, as well as inventory and supply levels to continue delivery of Goodyear products,” McClellan said.

‘MASS UPLOAD’ TO OESC FOR UNEMPLOYMENT BENEFITS

The Lawton plant will perform a “mass upload” to the Workforce of Oklahoma website (the Oklahoma Employment Security Commission) to secure unemployment benefits for all employees, Goodyear announced.

In addition, the company reported it will have human resources personnel at the Wingfoot Room in the Learning Center on Thursday and Friday, March 26-27, from 9 a.m. to 3 p.m. “to assist anyone with unemployment benefits.”

The company is following the guidance of the Centers for Disease Control and Prevention “and has introduced a number of preventative measures at its facilities,” corporate officials said. Those include limiting visitor access and business travel, implementing remote working and “social distancing” practices, and increasing frequency of disinfection.

In his message to employees, McClellan asked them to “tightly manage costs, limiting to essential spend and travel only, to continue to support the long-term health and success of our company,” and to “find ways for Goodyear to lead and demonstrate what sets our team apart from the competition.”

A call placed Saturday afternoon to Jimmy Cagle, communications manager at the Lawton tire plant, was referred to Barbara Hatala at the company’s corporate headquarters in Akron, Ohio. She emailed a news release that largely mirrored McClellan’s statement to Goodyear Americas employees.