13 November 2008 18:54 [Source: ICIS news]
TORONTO (ICIS news)--Goodyear is much less exposed to the deepening troubles of the Big Three Detroit car makers than many analysts seem to realise, the chief financial officer of the US tyre producer, said on Thursday.
Darren Wells responded to credit ratings agency Standard & Poor's decision to place Goodyear on credit watch as part of a broader ratings action that included 14 auto industry-related firms.
“There are fundamental differences between our business and the companies whose businesses are heavily tied to the Michigan-based auto manufacturers," Wells said.
"We're disappointed in S&P's action.”
Goodyear did not expect its liquidity to be materially affected by the financial challenges the car makers are facing, Wells added.
Only 8% of its $20bn (€16bn) sales last year were with the three car majors - GM, Chrysler and Ford - while over 80% were to the replacement market for consumers who already had vehicles, the company said.
Goodyear is a large consumer of butadiene and other chemical producrts.
It employs 70,000 at 60 production sites in 25 countries around the world.
($1 = €0.80)
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