Goodyear Tire and Rubber Company announced on Monday that CEO Mark Stewart ( Mark Stewart ) will step down from his position effective immediately.
Goodyear announced that Roger Wood ( Roger Wood ), a member of the board of directors, will assume the role of interim Chief Executive Officer and President.
At the time of this leadership change, the tire company was in the midst of a multi-year transformation plan.
Stewart was appointed to lead the company in January 2024 with the goal of reviving this historic American enterprise and making it more efficient and profitable.
However, the company's performance to date has not been ideal. The third-quarter results announced last week showed that net sales decreased by 2.3% year-on-year, with an adjusted net loss of $31 million. Goodyear failed to achieve a 10% operating margin by the end of last year, which was originally an important goal in its transformation plan.
Goodyear stated that earlier this year, a special committee was established by the board of directors to conduct a 'strategic assessment' of the company's business and operations, with a focus on identifying opportunities to improve performance and enhance shareholder value.
The company stated on Monday that it will continue to advance this work, evaluating strategic and operational measures including further optimizing the business portfolio and layout, improving efficiency, as well as investing in new products and capabilities to support long-term growth.
Goodyear Chairman Joe Hinrichs ( Joe Hinrichs ) stated in a press release: "Goodyear has made meaningful progress in becoming a more efficient and focused company, and the board of directors believes that now is the right time to transition leadership, accelerate this process, and seize more opportunities."
The obstacles faced by the company include tariffs, rising raw material costs, and increased competition from China.
Since July 2023, Wood has served as a member of the company's board of directors. Prior to that, he held the position of Co-CEO of Tenneco and CEO of Dana Holding Corporation.
The company stated that it will initiate the selection process for a permanent successor as part of its strategic assessment.
On Monday morning, the stock price of Goodyear fell by about 4%.
