Goodyear India

INTERNATIONAL BUSINESS CIA-II

INFO. The project is on Goodyear India owned by Goodyear Tires and Rubber Company situated in Akron, Ohio, The United States of America. Its Indian Head office is on Mathura Road, Ballabgarh, Faridabad.

PREPARED BY, GOODYEAR INDIA ltd.

SHASHANK BARANWAL 08D1061

7/17/2009

IIBBM-A

NAME OF THE COMPANY: Goodyear India ltd. Year of Establishment: Goodyear India Ltd (Goodyear) was established in 1922 by Goodyear Tire and Rubber Co, US which currently is the holding company. In 1961, the company began its own manufacturing in the country. Goodyear manufactures tyres and rubber goods used by the automobile industry.

Country of Origin

:

The United States of America, Ohio

Nature of Business Diversification: Tyres, flaps, industrial rubber products.

Number of Employees: 70,000

SUBSIDIARIES: Goodyear is one of the world’s largest tire companies, with operations in most regions of the world. Together with its U.S. and international subsidiaries and joint ventures, Goodyear develops, manufactures, markets and sells tires for most applications. It also manufactures and sells rubber-related chemicals for various applications. Goodyear is one of the world’s largest operators of commercial truck service and retreading centers. In addition, it operates more than 1,600 tire and auto service center outlets where it offers its products for retail sale and provides automotive repair and other services. Goodyear manufactures its products in more than 60 facilities in 25 countries. It has marketing operations in almost every country around the world. Product Profile and Portfolio of Business: Goodyear manufactures automotive bias tyres viz. medium commercial truck and farm tyres. The company also trades in Goodyear branded tyres including radial passenger and off-the-road bias tyres. The other products manufactured by the company include tubes, flaps and other industrial rubber products. The other brands promoted by the holding company include Dunlop, Kelly, Sava and Fulda. Goodyear has an installed capacity to manufacture 1.2 mn tyres, 1.3 mn tubes and over 300,000 flaps. The company’s radial passenger tyres are manufactured by its subsidiary Goodyear South Asia Tyres Pvt Ltd in Ahmedabad, Gujarat. The company undertakes R&D at the technical centres of the holding company located in Luxembourg, Akron and Japan.

In the farm segment, Goodyear tyres are supplied to tractor manufacturers like PTL, ITL, TAFE, Eicher and Escorts where as the trucks and HV tyres are sold to TELCO, Ashok Leyland, and Swaraj Mazda among others. The company exports to Pakistan, Nepal, Bangaldesh, Sri Lanka, Bhutan, Australia, Dubai, Hong Kong and Phillipines. In 2006 the company launched its retail store shop-in-shop in eight cities. 

Dunlop Tyres



The Kelly Springfield Tire Company



Fierce



Lee



Sava Tyres (Slovenia)



Fulda (Germany)



Debica (Poland)



Wingfoot commercial tire systems, LLC.

Bluestreak(Indonesia) Regetta (Australia) Distributed by KMART LS2000 (Japan) Disributed by Goodyear Autocare

KEY EXECUTIVES - GOODYEAR INDIA LTD. (GDYR)

Name

Title

Rajeev Anand Member of Audit Committee

Vice Chairman, Managing Director and

Hugo Oswald Dedekind Whole Time Financial Director, Executive Director and Member of Shareholders/Investors Grievance Committee Hingorani Harish

Head of IT

BOARD OF DIRECTORS - GOODYEAR INDIA LTD. (GDYR)

Name Pierre E. Cohade Rajeev Anand

Primary Company Goodyear Tire & Rubber Co. Goodyear India Ltd.

Hugo Oswald Dedekind C. Dasgupta

Goodyear India Ltd.

Goodyear India Ltd.

Ravi Vira Gupta

Seshasayee Paper and Boards Ltd.

EXECUTIVE COMMITTEES* - GOODYEAR INDIA LTD. (GDYR) Committee Name

Chairperson

Audit Committee

Members

Ravi Vira Gupta

Corporate Governance Committee Executives

C. Dasgupta

Name

4 Executives 5 Relationships

4

Title

Rajeev Anand Member of Audit Committee

Vice Chairman, Managing Director and

Hugo Oswald Dedekind Whole Time Financial Director, Executive Director and Member of Shareholders/Investors Grievance Committee Hingorani Harish Name

Head of IT Title

Chris Aked

Director, Communications, Europe

Ajay Aneja

Media Contact, India

Ronn Archer

VP, Finance, Europe

Jennifer Arnold

Media Contact, Blimps and Broadcasting

Damon Audia

Assistant Treasurer, Capital Markets

Dave Beasley Systems, North America Pilar Bernal Mike Blackburn Judith Bodenham

Director, Tire Sales, Commercial Tire Media Contact, Mexico General Manager, Retail Operations Media Contact, Great Britain (Birmingham)

John Boland

Advertising Manager, Retail Stores Division

Henry Braun

General Manager, Russia

Amy Brei

Media Contact, Agricultural Tires

Jean-Paul Bruck Karen Burke Paulina Campo de Carvajal Marina Canziani Luiz Carlos Martins Peter Christoffersen Christopher Clark Pierre Cohade Joseph Copeland Chris Corcoran Andrzej Czarnecki Arthur de Bok Phillippe DeGeer Mohamed Touham El Ouazzani Ted Fick Johann Finkelmeier Tires, North American Tire Eduardo Fortunato

Media Contact, Luxembourg VP, 6 Sigma Media Contact, Colombia Media Contact, Italy Partner General Manager, Commercial Tire Systems SVP, Global Sourcing President, Asia-Pacific Region CEO, South Pacific Tyres President, Goodyear Brazil Media Contact, Poland (Debica) President, European Union Business General Manager, France Media Contact, Morocco President, Commercial Tire Systems VP and General Manager, Original Equipment President, Latin American Region

Joseph Gingo

EVP, Quality Systems and CTO

Jason Ginsberg

Director, Marketing Services

Rick Godic Barbara Gould Tom Grolemund Nestor Hansen Donald Harper Shared Services

Manager, Operations Director, Investor Relations General Manager, Chemicals Associate Scientist VP, Human Resources, North America

Lize Hayward William Hopkins

Media Contact, South Africa VP, Technology and Strategic Initiatives

Tricia Ingraham Technology

Media Contact, Financial Information and Tire

Pierre Jambon Isabel Jasinowski

General Manager, Global Aviation VP, Government Relations

Jarro Kaplan Africa Tire

President, Eastern Europe, Middle East, and

Robert Keegan

Chairman, President, and CEO

Elke Klamann

Media Contact, Germany

Thomas Kong

VP, Retail Services

Donn Kramer Systems, North America

Director, Marketing, Commercial Tire

Richard Kramer Samuel Landers

EVP and CFO Research and Development Fellow

Jelka Laurencic Michael Lavetzis

Media Contact, Slovenia Media Contact, Greece

Edward Markey Communications, North American Tire Lawrence Mason Ron Maulsby Steve McCellan Tire Gary Miller Andreas Niegsch Robert Novotny Technology Siriluck Ongthaveekiat

VP, Public Relations and

President, Consumer Tires, North American Tire Media Contact, Environmental Issues VP, Commercial Sales, North American VP, Purchasing and Chief Procurement Officer General Manager, UK VP, Global Engineering and Manufacturing Media Contact, Thailand

Michael Parnell America Steve Pauly North American Tire

VP, Original Equipment Sales, North Director, Manufacturing, Commercial Tires,

Ron Pike

Media Contact, Great Britain (Wolverhampton)

Brett Ponton

VP, Goodyear North American Consumer Retail

Michael Pulte American Tire Jonathan Rich Jesse Roeck Michel Rzonzef Africa, and Middle East Iman Santoso Skip Scherer and Hoses Peter Schmidt Rene Silva Charles Sinclair Dipinder Singh Clint Smith Faith Stewart and Minority Affairs

Manager, Extreme Peformance, North President, North American Tire Director, Tire Development and Tech Center Director, Marketing, Eastern Europe, Media Contact, Indonesia Media Contact, Automotive and Industrial Belts Media Contact, Germany Media Contact, Philippines SVP, Global Communications Director, Global Requirements Planning Media Contact, Kelly-brand Tires Media Contact, Charitable Contributions

Carole Swartz

Media Contact, Racing

Jacek Szklarek

Media Contact, Poland

Laura Thompson

VP, Business Development

Timothy Toppen

President, Engineered Products

Cesar Victora Guy Villa Marc Voorhees

Media Contact, Venezuela Account Executive, Ford Motor Company VP Finance, North American Tire

Christopher Werner

VP, Manufacturing, North American Tire

Stephanie Wernet

VP, Information Technology and CIO

Dave Wilkins

Media Contact, Aviation Tires

Jack Winterton Joe Zekoski

VP, Consumer Sales, North American Tire General Director, Luxembourg Technical Center

MERGERS AND ACQUISITIONS AND CROSS SHARING 1922: Goodyear tyre and Rubber company Akron, Ohio entered the Indian Market. 1961: Goodyear India's own manufacturing facility was inaugurated in Ballabgarh, 32 kms from India’s capital New Delhi .The plant had an investment of US $12million and was commissioned within 12 months. 1965: The Ballabgarh plant was expanded which increased the plant production by 35% 1969-70: The production increased by nearly 100% 1993: Goodyear formed a 50-50 joint venture with South- Asian Tyres Ltd. (SATL) at Aurangabad to manufacture state-of-art radial tyres for car and light truck and bias construction tyres for graders and earthmovers. 1996: The first tyre GPS2 radial Passenger was rolled out from Aurangabad plant 1998: SATL becomes a fully owned Goodyear Company 1999: A significant investment of 9.3 MM USD was made in the farm tyre manufacturing process. 2002: Goodyear becomes the first tyre manufacturer to roll out tubeless tyres on Indian roads.

PRESENT FINANCIAL PERFORMANCE Quarterly Report For GOODYEAR INDIA(2008) - Sales of $4.1 billion for quarter, $19.5 billion for year - Pricing/product mix gains of $263 million for quarter, $942 million for year

- Significant cost savings of $205 million for quarter, $700 million for year

2009 Actions - Global product leadership extended with more than 50 new tire launches - Cost actions raise 4-point plan savings to $2.5 billion, $700 million in 2009 - Personnel reductions of nearly 5,000 planned, salaries frozen - Additional capacity reduction of 15 to 25 million units over the next two years - Cash flow actions target 2009 capital expenditures of $700 to $800 million and inventory reductions of more than $500 million. AKRON, Ohio, Feb. 18 -- The Goodyear Tire & Rubber Company today reported fourth quarter and full year 2008 results and detailed actions to address market challenges in a much weaker economy. Goodyear's fourth quarter 2008 sales were $4.1 billion, down from $5.2 billion in the 2007 quarter, despite increases in Goodyear-branded market share. The company's net loss was $330 million ($1.37 per share), compared with net income of $52 million (23 cents per share) in the 2007 quarter. All per share amounts are diluted. "Given lower industry demand, we are taking aggressive action, reducing tire production, cutting costs and adjusting investments to better match market conditions," said Robert J. Keegan, chairman and chief executive officer. "The many positive actions we took and the results we achieved in 2008 provide a base from which we will address the market challenges we will inevitably face in 2009," he said. 2009 Actions Consistent with Goodyear's ongoing strategies, Keegan announced actions in three key areas to address the economic environment in 2009. Top Line Growth: The company plans an unprecedented number of new product launches in 2009, with more than 50 new tires being introduced globally. Targeted to key segments, these include the new Assurance Fuel Max tire introduced earlier this month in North America and more recently announced as original equipment on the new Chevrolet Volt electric vehicle. Significant launches that showcase Goodyear's innovative new products will be made across all geographic regions. Cost Reductions: Goodyear plans to further reduce costs by approximately $700 million in 2009 and has therefore raised its four-point cost savings plan target to $2.5 billion. Actions include: -- Further reducing personnel levels by nearly 5,000 in addition to almost

4,000 reductions in the second half of 2008 and freezing salaries. -- Implementing new cost control policies to eliminate non-essential discretionary spending. -- Purchasing actions to lower the cost of both raw materials and indirect materials. In addition, Goodyear plans to eliminate between 15 million and 25 million units of additional manufacturing capacity worldwide over the next two years. Managing for Cash: The Company plans to implement a number of cash flow actions in 2009, including: -- Cutting capital expenditures to between $700 million and $800 million. -- Reducing inventory levels by more than $500 million. -- Pursuing the sale of non-core assets. "Collectively, these actions address the new economic realities," said Keegan. "We will remain flexible and are prepared to take additional actions if market conditions warrant. Our goal is to ensure Goodyear is positioned for success when tire markets recover."""

Quarter

1

Term (no of months) Sale 25,355.00

1

3

19,343.00

3

174.00

Total expenses 24,484.00

17,156.00

543.00

Raw material 9,522.00 Staff cost 1,236.00

7,498.00

1,281.00

Other expenses -17.22 10,727.00

7,834.00

3

-7.00

Other Income -297.00

Stock/inventories 2,999.00

4

20,800.00

-62.74

467.00

-9.39

-

-5.70

18,934.00

27.95

-6.94

-1,144.00

-28.64

24.01

10,508.00

1,033.00

-8.23

-

-2.57

13.52

8,537.00

Gross profit 516.00

2,296.00

Interest 58.00

0.83

65.00

Depreciation 249.00 Tax

2,277.00

16.07

311.00

3.32

19.15

56.00

-66.06

301.00

9.06

684.00

-4.20

714.00

14.79

Net profit -7.00

1,301.00

3.09

1,262.00

24.58

Equity 2,307.00

2,307.00

0.00

2,307.00

0.00

274.00

Reserves

0.00

-

0.00

Dividend

0.00

-

0.00

-

0.00 0.00

MARKET SHARE Goodyear's top competitors are Michelin and Bridgestone. Goodyear is the third largest by market share behind Bridgestone and the leader Michelin. Both competitors are based overseas, Michelin in France and Bridgestone in Japan. Michelin is the leading producer in Europe and also is the leading producer in China. Bridgestone is the leading producer in Japan. Michelin, has a less favorable cost base than Goodyear but can charge higher prices due its superior technology. Through Bridgestone's combination of marketing and product mix it has been able to increase its sales dramatically in comparison to its competitors while charging higher prices.

Company Comparison in 2008 Revenue Company (in millions)

Largest Revenue Sales Growth Region

Goodyear $20,258

2.7%

North America

3.9%

$359

Michelin

5.1%

Europe

8.2%

$591

11.1%

North America

6.4%

$728

$22,031

Bridgesto $25,113 ne

Research and Operating Development Cost (in Margin millions)

RESEARCH AND DEVELOPMENTS AND PATENTS RIGHTS Goodyear and the U.S. Department of Energy’s Sandia National Laboratories will work together to develop new and more efficient manufacturing processes under an agreement signed here today. The $17 million pact allows Goodyear and Sandia to share technology. Sandia, as a Department of Energy national lab, is responsible for designing and manufacturing oversight of components used in the nation’s defense programs. the tire company recently announced it would invest $26 million to hire 125 new engineers and scientists for its technical centers in Akron and Colmar-Berg, Luxembourg to spur new product development. Goodyear’s Assurance featuring TripleTred Technology was the only tire included in the new group of R&D 100 products, and the first tire honored in the contest in 35 years. The tire was designed to be visually arresting, and its eye-catching sinuous and sculpted directional tread pattern is as attractive as it is functional. The aggressive appearance also helps retailers explain the tire’s benefits and technology to consumers.

Dedicated to the research and development of rubber chemicals, Goodyear Tire makes safe and effective tire treads for a quality consumer market place. In fact, The Goodyear Tire Company has contributed too many industrial areas that utilize rubber technology and chemistry, like: • • • •

Rubber Latex Hot Melt Adhesives Artificial Rubber Turf Recyclable Polyester

Great for outdoor adventure, Goodyear’s Rawhide Grip technology allows ATV tires to survive the toughest roads.Rawhide technology has been created with polymer tread wear, chip resistant tracks, and 2-ply anti-penetration construction. Check out some more benefits the ATV Rawhide Tire has to offer, including: • • • •

Mud Traction 3/4 Deep Lugs Tread Patterns Premium Rubber

One of Goodyear's ongoing research and development projects is an initiative to develop an ultra low rolling resistance tyre with environmentally friendly resources. The grant is part of the European Union's LIFE-Environment program. For this project Goodyear is working in close co-operation with two research partners: the Italian research company Novamont and the German car maker BMW. Today, carbon black and silica are the main reinforcing components used in the tyre rubber compounds. Both carbon black and silica production processes require non renewable resources such as crude oil and generate CO2 emissions. Further evolution in bio-tyre technology anticipates the partial replacement of carbon black and silica by a new generation of bio filler. These research activities are currently being performed by Goodyear and its research partner Novamont. The research project follows the objective of partly replacing the non renewable rubber reinforcing components with bio-polymeric fillers based on renewable resources and at the same time achieving a substantial reduction (up to 30 %) of the tire’s rolling resistance, thus reducing CO2 emission and fuel consumption. It has been a very successful innovator and has set an example before many of the organizations in the field of R&D and has been well recognized for it also.

EXPORTS AND IMPORTS Goodyear has transactions (exports and imports) with the following countries.

NORTH AMERICA United States Akron, Ohio World Headquarters, North American Tire headquarters, technical center, racing tires, tire proving grounds, global purchasing, airship operations, research and development facilities Asheboro, North Carolina

Steel tire cord

Bayport, Texas

Chemicals

Beaumont, Texas

Synthetic rubber

Carson, California

Airship operations

Danville, Virginia

Tires

Fayetteville, North Carolina Gadsden, Alabama

Tires Tires

Houston, Texas

Synthetic rubber

Huntsville, Alabama

Tire proving grounds

Kingman, Arizona

Aero retread facility

Lawton, Oklahoma

Tires

Niagara Falls, New York Pompano Beach, Florida San Angelo, Texas Social Circle, Georgia Spartanburg, South Carolina

Chemicals Airship operations Tire proving grounds Tread rubber Tread rubber

Statesville, North Carolina

Tire molds

Stockbridge, Georgia

Aero retread facility

Tonawanda, New York

Tires

Topeka, Kansas

Tires

Union City, Tennesse

Tires

West Amherst, New York Headquarters

Goodyear Dunlop Tires North America

Canada Medicine Hat, Alberta

Tires

Napanee, Ontario

Tires

Valleyfield, Quebec

Mixing Center

EUROPE Belgium Brussels Goodyear Dunlop Tires Europe headquarters; Europe, Middle East & Africa Tire headquarters France Amiens

Tires

Mireval

Tire proving grounds

Montlucon

Tires

Germany Fuerstenwalde

Tires

Fulda

Tires

Hanau

Tires

Philippsburg Riesa

Tires Tires

Wittlich

Tires

Luxembourg Colmar-Berg technical center, tire proving grounds

Tires, steel tire cord, tire molds,

Netherlands Tilburg

Aero retread facility

Poland Debica

Tires

Slovenia Kranj

Tires

United Kingdom Birmingham Wolverhampton

Tires Mixing Center

MIDDLE EAST AND AFRICA South Africa Uitenhage

Tires

Turkey Adapazari, Turkey

Tires

Izmit, Turkey

Tires

United Arab Emirates Dubai

Regional tire sales and distribution

LATIN AMERICA Brazil Americana

Tires, tire proving grounds, films

Santa Barbara Sao Paulo tires, aero retread facility

Retread materials Latin America Tire headquarters,

Chile Santiago

Tires

Colombia Cali

Tires

Peru Lima

Tires

Venezuela Valencia

Tires

ASIA PACIFIC China DalianTires Shanghai India

Asia Pacific Tire headquarters

Aurangabad Ballabgarh

Tires Tires

Indonesia Bogor

Tires

Japan Tatsuno

Tires

Malaysia Kuala Lumpur

Tires

Philippines Las Pinas

Tires

Singapore Singapore

Natural rubber purchasing

Taiwan Taipei

Tires

Thailand Bangkok

Tires, Aero retread facility

GOODYEAR: SERVING CUSTOMERS WORLDWIDE Goodyear, one of the world's leading tire companies, has a presence on six continents and annual sales of $19.5 billion. In addition to Goodyear brand tires, it produces and sells tires under several other well-respected brand names including Dunlop, Kelly, Fulda, Sava and Debica. Goodyear markets its products in 185 countries and manufactures them in more than 60 plants in 25 countries and employs about 75,000 people.

GOODYEAR: STRATEGIC BUSINESS UNITS Goodyear strategic business units are organized to meet customer requirements around the world. Geographic Served

Markets

Strategic Business Unit

Products & Markets

North American Tire

Original equipment and United States, Canada, replacement tires for autos, Export trucks, aircraft

Europe, Middle East & Africa Original equipment and Europe, Tire replacement tires for autos, Export trucks, tractors

South

Africa,

Latin America Tire

Original equipment and Central America, South replacement tires for autos, America, Export trucks, tractors

Asia Pacific Tire

Original equipment and Asia, Australia, replacement tires for autos, Zealand, Export trucks, farm, aircraft

New

GREENFEILD PROJECTS PROTECT AND PRESERVE Goodyear is committed to protecting the environment and the health and safety of their associates, their customers, and the communities where they operate. As a global socially responsible corporate citizen, goodyear conducts the business with the highest applicable legal and ethical standards and shall strive to contribute to economic development and environmental protection, while seeking to improve the quality of life for associates, families and communities, and society in general. We want our associates to have a work environment where they feel safe and secure. To that end, we shall: •

•

•

Comply with all applicable environmental, health and safety laws and regulations and Goodyear's global Environmental Protection, Health and Safety standards. Establish environmental health and safety management systems based on recognized standards, and a set of company-wide goals and objectives for continual improvement. Integrate environmental, health and safety considerations into all key

• •

•

business decisions - including the design, production, distribution and support of our products and services. Work with suppliers and customers to promote responsible use of our products. Strive to reduce environmental impact and conserve natural resources by minimizing waste and emissions, reusing and recycling materials, and responsibly managing energy use. Encourage and educate our associates to take personal accountability for working toward protecting the environment and creating a safe and healthy workplace.

Meeting these objectives is a primary management goal and the individual and collective responsibility of all Goodyear associates worldwide.

CORPORATE ISSUES

Sexual discrimination lawsuits Lilly Ledbetter was a supervisor at Goodyear Tire and Rubber’s plant in Gadsden, Alabama, from 1979 until her retirement in 1998. For most of those years, she worked as an area manager, a position largely occupied by men. Initially, Ledbetter’s salary was in line with the salaries of men performing substantially similar work. Over time, however, her pay slipped in comparison to the pay of male area managers with equal or less seniority. By the end of 1997, Ledbetter was the only woman working as an area manager and the pay discrepancy between Ledbetter and her 15 male counterparts was stark: Ledbetter was paid $3,727 per month; the lowest paid male area manager received $4,286 per month, the highest paid, $5,236. Lilly Ledbetter sued Goodyear claiming she was paid less than men doing the same work. She won the suit and was awarded $360,000, the jury deciding that Goodyear had clearly engaged in discrimination.

"No Firearms" policy Recently customers have noticed a "no firearms allowed" sign posted on the entrance doors to all Goodyear stores. The official response from the company is as follows: In an effort to ensure the safety and security of our associates and customers, we have a clear company policy regarding weapons in the workplace. The Goodyear Tire and Rubber Co. prohibits all persons who enter Company property from carrying a handgun, firearm, or prohibited weapon of any kind onto the property regardless of whether the person is licensed to carry the weapon or not. Exceptions apply to on-duty law

enforcement personnel. This policy applies to all Company employees, visitors, customers, and contractors on Company property -- including our Company-owned stores. All Company properties have received a decal or sign referencing this policy, and have been instructed to post it. The policy also restricts off-duty officers of the law from carrying a firearm into the store as well. Researchers at the University of Massachusetts Amherst identified Goodyear as the 25th-largest corporate producer of air pollution in the United States, with roughly 4.16 million lbs of toxins released into the air annually. Major pollutants included sulfuric acid, cobalt compounds, and chlorine.[11] The Center for Public Integrity reports the Goodyear has been named as a potentially responsible party in at least 54 of the nation's Superfund toxic waste sites. Goodyear's plants in Aurangabad and Ballabgarh, India have received recognition for their excellence in energy conservation, efficiency and management with awards from both state and national governments.

CORPORATE SOCIAL RESPONISIBILITY Goodyear recognizes that it has a responsibility to support and give back to the communities in which it operates. Goodyear charitable giving and community enterprise programs are based on the principle that corporate social responsibility is the right thing to do. Throughout the world, Goodyear is one of the leading employers, and communities look to the company for support. Asia-Pacific Emergency Earthquake Relief •

In May 2006, Indonesia suffered an earthquake with a magnitude of 5.9. More than 4,000 died and over 100,000 were displaced. Goodyear Indonesia responded with emergency relief, including food, clothing and money.

Typhoon Relief •

In 2006, the western portion of China’s Guangdong Province suffered losses from floods and heavy rains due to Typhoons Bilis and Prapiroon. Goodyear joined with one of China’s influential news organizations to auction photographs of the Goodyear Blimp’s first flight to Guangdong Province.

Proceeds from the auction, along donations from Goodyear, generated more than $38,000.

with

other

European Union Royal National Lifeboat Association •

Since 2004, Goodyear associates in the United Kingdom have been participating in this program and raising funds through the Goodyear National Wet Safety Week.

Motorsport-Themed Fashion Course •

Funded by Goodyear and Dunlop®, students at the London School of Fashion participated in this course, which premiered during the 2006 Autosport International Exhibition.

Latin America Plante Esta Idea (Cultivate This Idea To Make It Grow) •

More than 55,000 people have participated in this program, which encompasses volunteer work by associates and focuses on environmental protection, since 2003. For example, Goodyear Brazil worked with local governments to establish 170 used tire collection centers.

Primary School Initiatives • •

Goodyear Venezuela has achieved particularly good results in vaccination and drug prevention campaigns for schools. Goodyear Venezuela also plans to develop volunteer work for all Goodyear associates, including projects that benefit the environment, teach drug

prevention and create opportunities for a better quality of life in health and education. Eastern Europe, Middle East & Africa World AIDS Day

•

Goodyear South Africa began its program of HIV/AIDS education and awareness in 1989. Recently the company conducted a four-week series of talks and programs designed to increase knowledge, build awareness, and promote voluntary counseling and HIV testing. Goodyear is one of the first companies in South Africa to recognize a corporate responsibility to provide help and intervention in regards to this pandemic.

Ilinge Women Crafters •

This group provides a main source of income for numerous residents of the Zwide township in Port Elizabeth, South Africa. Members focus on traditional African and modern beadwork and sewing. Following a burglary of the

organization, Goodyear donated sewing machines and other accessories to help the development of the small business. After the township’s local government selected the organization to participate in a national festival of arts and culture, the new sewing machines, combined with the organization’s beadwork, provided valuable exposure and income. North America Education Programs •

•

Goodyear contributes time and financial support to education programs. It supports area universities focusing on business management, knowledge management, information architecture, engineering and finance. Since 1965, Goodyear has partnered with the National Merit Scholarship Corporation, providing $3 million in scholarship funding to children of

• •

Goodyear associates throughout the U.S. Strategic business units and plants also fund scholarship programs through a multitude of local communities and organizations. Since 2000, associates at Goodyear headquarters in Akron have adopted an area elementary school. Associates volunteer one lunch hour a week to tutor third graders in reading. As a result, reading scores have improved by almost 100 percent during the life of the program.

Engineering Career Day for Young Women •

This program is designed for middle school and high school students and their parents. Goodyear helps teach them about career choices available with an engineering degree.

JPMorgan Chase Corporate Challenge •

This program, the world’s largest corporate road race series, was named "Charitable Event of the Year" in 2006 by U.S. Track & Field. Goodyear associates in Buffalo, New York participate as part of a company team.

Highway Hero Program •

•

Founded by Goodyear in 1983, the Highway Hero program recognizes professional truck drivers and highway safety. Itacknowledges the often unnoticed, life-saving rescues and roadside assistance they provide as their jobs take them across North America. Trucking industry journalists select nominees and one driver annually receives the title of Goodyear Highway Hero. Similar programs have also been started in Latin America and Asia-Pacific.

Worldwide Goodyear Strategic Charitable Giving •

Goodyear supports traditional programs that improve cities, social programs and educational opportunities in communities where Goodyear

•

•

associates live, work and play, and which offer unique solutions to help keep citizens safe and secure. In 2007, Goodyear strategic charitable giving will reflect our internal corporate value of safety. Primary funding will be awarded to organizations whose initiatives focus on safety and relate to one or more of the following areas: o Civic, community and other - Grant awards will depend on local needs and customs in the communities in which we operate. o Culture and the arts - Requests from organizations and institutions serving plant communities and selected national arts organizations will be considered, provided they comply with the connection to safety. o Education - Requests for support from colleges, universities and other educational institutions serving the areas in which our plants and principal offices are located must demonstrate a connection with safety or must be a source of subsidized educational opportunities for Goodyear associates and their families. A limited number of private and public universities of national or regional significance, whose programs are of special interest or those that provide a continuing source of associates to Goodyear, may also receive priority. o Health and human services - Highest priority is given to United Way campaigns in communities where our plants and principal offices are located. Organizations receiving United Way support may not be eligible for additional funding. A majority of approved grants will provide funding to programs that remind citizens that Goodyear tires are the best choice for their diverse transportation needs.

MAJOR ACHJIEVEMENTS Spreading its wings outside the geographical boundaries of the country Goodyear India exports tyres to other countries such as Pakistan, Nepal, Bangladesh, Sri Lanka, Bhutan, Australia, Dubai, Hong Kong, and Philippines. • Haryana State Safety Award 2003 • TS 16949 in the year 2004 by NSF- ISR, USA • ISO 14001 in the year 2004 by NSF- ISR, USA • CAPEXIL Special Export Award 2004-2005 • Certificate of Merit in National Energy Conservation Award 2004-2005 ( Tyre sector) • SAKAAL SIX SIGMA EXCELLENCE AWARD -2006

Goodyear is committed to continuously improve energy conservation in all its activities for substantial growth for future generation and is an example to others in the industrial sector. Its efforts create an environment that would spur industries in achieving excellence in efficient use of energy conservation and motivating other energy consumers in joining and promotion of a nationwide energy conservation movement doing commendable work on attaining better standards of energy efficiency and its conservation in their respective fields.

LINKS: http://www.energymanagertraining.com/eca2006/Award2006_CD/31Tyre/GoodyearIndiaLimited BallabgarhPlant.pdf http://en.wikipedia.org/wiki/Goodyear_Tire_and_Rubber_Company http://www.wikinvest.com/stock/Goodyear_Tire_&_Rubber_Company_(GT) http://www.goodyear.co.in/ http://info.shine.com/company/Goodyear-India-Limited/799.aspx