Goodyear has put a lot of energy and focus into mobility solutions, and the tire maker said it is seeing the fruits of that endeavor as tires for electric vehicles (EVs) and the last-mile delivery sector continue to show growth potential.
Mike Dwyer (MD), chief customer officer and general manager of consumer replacement, Goodyear North America, and Cary Budzinski (CB), senior director, commercial sales, Goodyear North America, told Tire Business that demand continues to increase for both consumer and commercial products, which bodes well for the industry.

How would you describe business thus far in 2021?

CB: The trucking industry is booming and the need to move goods is only increasing as the economy recovers. This is great news for both fleets and the tire industry ? as their business grows, so will the demand for our tires. We expect to see this trend continue through the remainder of the year.
MD: We've seen faster-than-expected recovery in our consumer business as the world emerges from COVID-19. Vehicle miles traveled are up as consumers get back on the road, traveling longer distances and resuming their commutes. Key indicators point to continued industry growth throughout 2021.

What is the one thing you would like customers to know about how Goodyear has tackled the challenges brought about by the pandemic?
MD: Throughout the pandemic, our goal was to be a valued partner to our dealers and retailers. We recognized that it was a highly unpredictable and unusual year, and we wanted Goodyear to be a partner our customers could rely on to get through the tough times.
Now, as we emerge from the pandemic, we turn our attention back to our growth strategy, focused on high-value products, services and programs that benefit consumers, our customers and Goodyear alike.
CB: On the commercial side, the trucking industry was not as heavily impacted as other sectors since much of the supply chain needed to keep moving. During the pandemic, we kept our focus on supporting fleets and keeping trucks on the road.
We also adapted to new safety protocols across our commercial tire and service network to help ensure fleets had the tires and retreads they needed and drivers felt comfortable coming to us for service. Looking back, I'm proud of the way Goodyear reacted with agility in times of such uncertainty.
Do you expect any supply difficulties in the second half of the year? When do you expect the situation to ease?
MD: News of tight supply is increasing around the globe due to the impact of COVID-19. With raw material cost increases and supply chain and transportation challenges, products from our favorite foods to tires have been affected.
To help Goodyear and our customers take advantage of the strong demand in the market, we have been expanding our plant production, investing in more resources and prioritizing key product lines.
CB: Demand for tires in the trucking industry remained strong throughout last year and has become even stronger in 2021. We continue to closely monitor industry trends and work with our fleets in an effort to ensure we can continue delivering the tires they need.

What are some of the pleasant surprises in the industry?
MD: Across our commercial and consumer businesses, we are pleased to see such heightened demand in the tire industry. Particularly for consumers, the rate of recovery from the demand shock in 2020 tells us that the pandemic hasn't affected peoples' innate desire to move.
As a company focused on mobility, it's great for us at Goodyear to see the enthusiasm for getting back out there.

What kind of trends are you seeing in the market? How is your company reacting to them?

MD: We've been talking about FACE (fleets, autonomous, connected, electric) mobility trends for a few years at Goodyear and believe the pandemic and its impact on the economy have accelerated the auto industry's move toward these trends.
For example, we're seeing more emphasis on electric vehicles, and as online shopping increases, the need for last-mile delivery fleets also increases. Goodyear has been thinking along these lines for some time, and believe we are well positioned to leverage our unique product and service offerings to take advantage of these trends in collaboration with both OEMs (original equipment manufacturers) and replacement customers.
CB: While fleet business is strong, they are still looking for ways to optimize their operations, reduce downtime and save money. We continue to see building interest in Goodyear's Tire Management solutions, like Goodyear CheckPoint, TPMS Plus and TireOptix, that offer fleets the ability to improve the speed and accuracy of their tire monitoring program, detect potential issues in real time so they can proactively seek maintenance and extend the overall life of their tires.

What sector offers the most growth potential?
CB: One of the highest growth areas we're seeing is the last-mile delivery sector. Online shopping has increased sharply, especially in the last year, which has rapidly increased the demand for smaller delivery vehicles.
Anticipating this, Goodyear launched the Wrangler Fortitude HT tire in 2019 that is specifically created to meet the growing needs of the cargo van market.
We designed the Fortitude HT to be a long-lasting, rugged tire capable of handling heavy cargo loads in sizes that fit a wide variety of vehicles, including commercial service radial (C-type) sizes.
Do you expect to roll out any additional products in 2021?
MD: As we manage and are mindful of supply challenges impacting 2021, we targeted a smaller number of new products this year but look forward to returning to our normal cadence.
For 2021, we launched the Goodyear Assurance ComfortDrive, our latest premium commuter touring tire designed to give consumers a smooth, quiet ride. The Assurance ComfortDrive is available in 44 sizes, ranging from 16- to 20-inch rim diameters and is an ideal fit for passenger cars, minivans, CUVs and SUVs.
This fall, we expect to launch our Wrangler Workhorse AT, a tire designed for those who look for hardworking dependability in their tires. The Wrangler Workhorse AT delivers strong traction on and off road, enabling drivers to access remote job sites. It also features the Three-Peak Mountain Snowflake designation for harsh winter weather conditions.
CB: In commercial, we launched the Fuel Max LHD2, Goodyear's best long-haul drive tire for fuel efficiency, earlier this year. We're also expecting to launch three UniCircle retread products ? the Fuel Max RSD, Fuel Max RTD and UltraGrip RTD, which offer tread designs and compounds that match the tread designs and compounds used in the related new tires.
Our Goodyear UniCircle retread technology offers a seamless tread design that adheres closely to the tire casing and delivers a precise fit without the need for splicing, helping to improve retread uniformity and driver confidence.

What has been the overriding factor in recent price increases?

MD: We've seen significant increases in current raw materials, supply chain and transportation costs, but it's important to keep in mind that these pressures are not limited to the auto industry.
Consumers around the globe are experiencing rising prices on most products and services because of the impact COVID-19 has had on manufacturing, transportation and raw materials.
It is anticipated that the global economy will continue to experience these pressures for some time.

What would you say to tire dealers who remain skeptical about the Cooper Tire deal?
CB: With change always comes uncertainty, and we appreciate that, but we believe this deal presents tremendous opportunity for Goodyear and our customers. Overall, we have been receiving positive feedback on this announcement.

What are some of the challenges for the industry going forward? What keeps you up at night?
CB: Like many industries right now, the commercial trucking industry is experiencing labor shortages and having difficulty hiring the talent needed ? from professional truck drivers to technicians.
As an industry, we need to continue to work through this challenge to ensure we can thrive in this booming market.

Anything else you would like to add?
MD: It's a really exciting time to be in the tire industry as we return to a fully mobile society and the growth opportunities future trends like FACE offer.
Now more than ever, it's essential for us to keep up with the pace of change by working closely with our customers, understanding their needs and consumer preferences. This will help to ensure we continue to deliver the value, products and solutions that will exceed expectations.


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