Goodyear Tire ups cost cut plan, plans investments

Goodyear said it plans to increase its cost cut target to more than $2 billion by 2009, compared with a previous target range of $1.8 billion and $2 billion. The company said it will focus cuts on supply chain efficiencies and back office operations.

Goodyear also plans to invest up to $500 million to relocate and expand a manufacturing plant in China, in an effort to increase production of consumer and commercial tires in the Asia-Pacific region.

The company plans to spend $500 million to $700 million over the next five years to increase production and cost efficiency of four U.S. manufacturing plants.

Goodyear has earmarked $600 million to expand production in Brazil and Chile, and about $500 million to modernize and expand production in Germany and Poland.

The company expects total capital investments of about $1 billion to $1.3 billion annually through 2010.

Goodyear said it will monitor the size and scope of its plans based on macro-economic trends.

The company plans to discuss its plans in more detail at an investor conference Thursday.