1.

0 INTRODUCTION – GOODYEAR TYRE COMPANY

1.1 Goodyear Company in USA

The Goodyear Tire & Rubber Company is an American multinational tyre manufacturing

company that was founded in 1898 by Charles and Frank Seiberling and is primarily based in

Akron, Ohio. A multinational corporation (MNC) is defined as a corporate organisation that

owns or controls the production of goods or services in a minimum of one country other than

its country of origin. The company also manufactures and markets rubber related chemicals

for various applications. Goodyear products are used in trucks, cars, buses, motorcycles,

aviation, farm tools, industrial equipment, mining equipment and other equipment. Goodyear

began as a tyre manufacturer for bicycles and carriages, but eventually expanded into the

automobile business. Due to the advent of the Quick Detachable tyre, Universal Rim, and

pneumatic truck tyre in 1916, Goodyear Tire and Rubber Company became the leading tyre

maker. They kept this position until Groupe Michelin purchased the Uniroyal Goodrich Tire

Company in November 1990. Despite many ups and downs, Goodyear is now ranked as one

of the top four tire manufacturers along with Bridgestone (Japan), Michelin (France) and

Continental (Germany). Goodyear Tire and Rubber Company specialises in the development,

manufacture, distribution, and sale of automotive and industrial tires. Goodyear has operated

around 60 different factories in 26 different countries, with distribution in 185 countries

around the world. Revenue is generated through five operating units that include North

America, Latin America, the European Union, Asia-Pacific, and Eastern Europe. 

1.2 Goodyear company in Malaysia

The Goodyear tyre company has a branch in Malaysia as well. Goodyear has been based here

in Shah Alam, Selangor since May 1974, with a greater focus on production platform

automation and human capital development. Goodyear started business in Malaysia in 1908

when the Goodyear Orient Company was established in Singapore to purchase rubber from

farms in Malaysia and Indonesia. Sales of Goodyear products in Malaysia began in 1929

through Singapore-based Goodyear Sales Company. Goodyear Malaysia is one of the world's

leading tire companies with excellent performance in both sales and technology. The

company is a market leader in tire manufacturing and is a preferred brand by Malaysia’s

Original Equipment Manufacturer (OEM). In fact, Goodyear Malaysia is proud to have taken

the lead in advancing the tire retail business to the high standards commonly used today. To

meet the growing demands of various market segments, Goodyear Malaysia also imports

significant quantities of tires from subsidiaries in other ASEAN countries and is well

positioned to take full advantage of AFTA's market liberalization.

1.3 Product

Goodyear Tires and Rubber Company is a company that manufactures automobile tires and

rubber products. The wide selection of tires makes them one of the best options for buyers

when buying tires. Basically, you need to focus on the tires. There are several types of tires,

including Passenger Car Tires, High Performance Tires, SUV/Crossover Tires, Light Truck

Tires and All-Season Tires. I choose the Goodyear Eagle Sport All-Season product for my

assignments. This Eagle Sport All-Season is mainly use for cars. The Eagle Sport offers

excellent handling and braking performance and is a fun sports tire for driving enthusiasts. It

features the signature Eagle Claw tread pattern and Active Control technology for superior

cornering stability and optimal steering response. And thanks to Dynamic Braking
technology, it provides excellent braking performance on both wet and dry roads, while

ensuring a quiet and comfortable ride for passengers. Eagle Sport builds on Goodyear's

racing experience to deliver superior grip and handling performance. The tread and shoulders

of the tire are designed to provide responsive directional changes with effective control when

taking turns. The cost of a tyre ranges from RM250 to RM1060. As with any product you

buy, the quality and brand name of a tire can greatly determine the value of a tire. In general,

the higher the quality, the more expensive the tire. The performance of premium tires is

easily discovered during testing and affects many factors such as safety, friction, break,

speed, and more. When buying tires, you need to consider several aspects such as the right

tire size, tire life, speed rating, ride noise, style and ride comfort. As a result, the Goodyear

eagle takes all of these factors involved while creating its tyres. This eagle sports type is

Goodyear's best-selling and rated product. This eagle sport tyre had an excellent reputation in

the history.

2.0 COMPANY AND INDUSTRY ANALYSIS

2.1 Company Analysis

In 1898, Frank Seiberling founded the Goodyear Tire and Rubber Company in Akron, Ohio.

The company is named after Charles Goodyear, who developed the vulcanized rubber.

Seiberling borrowed $ 3,500 from his brother-in-law to buy the company's first factory.

Initially hiring 13 workers, Goodyear quickly grew into a leader in the manufacture of rubber

products such as bicycle tires, pneumatic carriages and automotive tires, hoof irons and inner

tubes. By 1926, Goodyear became the largest rubber company in the world.
David Hill became the company's first president after purchasing approximately one-third of

the $100,000 in shares issued by the Goodyear Tire and Rubber Company in 1898. The

company replaced two more presidents before Seiberling became CEO in 1906. The

company founder remained president of the company until his resignation in 1921 due to the

economic downturn. Seiberling personally designed the company's winged leg logo. This is

the same logo the Goodyear Tire and Rubber Company used in the 21st century. Goodyear

has led the industry in new product development. In 1903, the company developed the first

tubeless automobile tire. In 1909, the company expanded into the aviation industry with the

first aircraft tires. In 1919 they also developed the first bulletproof aircraft gas tank. The

company continued to lead the industry in new product development throughout the 20th

century. Goodyear's success is due in part to the complexity and varied response of radial tire

technology.

Between 1989 and 1991, Goodyear laid off 12,000 jobs. This is 10% of the total workforce,

more than half of which are in the paid sector. Combined with a $1.4 billion investment in

plant modernization and consolidation, this reduction resulted in annual savings of

approximately $250 million. Nevertheless, Goodyear is committed to an annual R&D budget

of over $300 million a year and is convinced of it as a source of high-quality tires such as the

Eagle GA and Eagle GT+4 from its successful high-end models, the 199O. By reshaping its

marketing strategy in the United States, the company regained lost market share and

maintained its position in a more difficult international market. While Goodyear is still

somewhat vulnerable to acquisitions due to its relatively low share price, Goodyear entered

the '90s when capital expenditures are complete and earnings growth is expected. Then the

company maintained its position until now. Goodyear has won many awards in its past

history, but now, in 2021, it is honoring Goodyear as Best Supplier at the 22nd Annual Ford
World Excellence Awards, Ford's highest recognition of its global supplier. Goodyear's main

corporate partners are Safari 4x4 Roetes, Spirit of Africa, Volkswagen Driving Academy and

Goodyear Eagles. That's also part of the success of the Goodyear business.

Sales of Goodyear products in Malaysia began in 1929 through the offices of the Singapore-

based Goodyear Sales Company. Goodyear Malaysia is one of the world's leading tire

companies with excellent results in both sales and technology. In October 1992, the company

became the first Goodyear tire plant to receive ISO 9002 certification, QS9000 and ISO14001

certification in 2002, and ISO/TS 16949 certification in 2003. Another important milestone

for us is our contribution to the development of the country. industrialization era. Goodyear

was the tire brand that was installed in Malaysia's first local car, the Proton Saga in 1985.

Goodyear tires have been selected as standard passenger and recreational vehicle tires by

local brands such as Proton, Perodua, and Naza, as well as by Honda, Hyundai, Volkswagen

and many other global manufacturers according to their high-quality standards. Joined the

Goodyear rating. Goodyear has received numerous awards from major automakers such as

Toyota's Outstanding Quality Performance in 2003, Proton's Best Overall Performance,

2008/2009 Perodua Quality Award, and more recently the Honda Award. Supplier of the

Year 2015 and Top 5 Inokom Suppliers. Goodyear Malaysia has been named Reader's

Digest's Most Trusted Brand for Tires for the 7th consecutive year. To meet the growing

demands of various market segments, Goodyear Malaysia also imports significant quantities

of tires from subsidiaries in other ASEAN countries and is well positioned to take full

advantage of AFTA's market liberalization.

2.2 Industry Analysis

Industry can be defined as any economic activity that involves the processing of raw

materials and the manufacturing of products in factories. The tire industry manufactured tire

using relatively standardized machinery and processes at approximately 455 tire factories

around the world. A tire is a durable, flexible rubber case attached to the rim of a wheel. Tires

provide a traction surface for traction and cushion the wheels of a moving vehicle. Tires are

used in automobiles, trucks, buses, aircraft chassis, agricultural machinery such as tractors,

industrial vehicles such as forklifts, and general vehicles such as strollers, shopping carts,

wheelchairs, bicycles, and motorcycles.

Tire manufacturing begins with raw materials such as rubber, carbon black, chemicals, and

the production of a variety of specialized components that are assembled and serviced.

Various rubbers are used, the most common being the styrene-butadiene copolymer. A tire is

a set of many components that are assembled in a drum and then vulcanized in a press under

the influence of heat and pressure. Heat promotes polymerization reactions that crosslink the

rubber monomers to form long elastic molecules. In 2004, $80 billion of tires were sold

worldwide, to $140 billion in 2010 (about 34% inflation-adjusted growth) and is expected to

reach $258 billion per year by 2019. In 2015, the United States produced nearly 170 million.

tire. More than 2.5 billion tires are produced each year, making the tire industry a major

consumer of natural rubber. It is estimated that by 2019, 3 billion tires will be sold worldwide

each year. In 2011, the top three tire manufacturing companies in terms of sales were

Bridgestone (produced 190 million tires), Michelin (184 million), Goodyear (181 million);

followed by Continental and Pirelli. The Lego Group produced more than 318 million toy

tires in 2011 and is recognized by the Guinness World Records as the company with the

highest annual tire production of any manufacturer.

3.0 COUNTRY ANALYSIS (FOREIGN COUNTRY)- U.S.A

1. History

The United States of America is well-developed in all sector. It has the most powerful

position in history. Manufacturing is an important sector in the United States. The United

States is the world's third-largest producer (after the People's Republic of China and the

European Union) with real production of $2 trillion in Q1 2018 (inflation-adjusted for 2009

dollars), and a pre-depression 2007 high of $1.9500 trillion. well over a billion dollars. The

manufacturing industry in the United States employed 12.35 million people in December

2016 and 12.56 million people in December 2017, a growth of 207,000 (1.7%). When it

comes to tire manufacturing, the U.S. market needs many tire manufacturers, as the U.S.

produces about 11 million passenger and commercial vehicles and sells about 17 million. The

US tire replacement market in 2019 was nearly $43 billion. In 2020, the market for tire was

drop drastically. It is because, industries all across the globe that have been badly impacted

by the COVID-19 pandemic. The U.S. tire market is targeted to achieve $50 billion by the

year 2021. According to history, Goodyear produced F4U Corsair fighter planes for the US

military during World War II. Goodyear placed 30th among US firms in terms of the value of

wartime production contracts. This is how tire manufacturing in The USA help to world war.

Moreover, to know the history of The USA and Malaysia, rubber from Malaysia is sold to

more than 200 nations. The United States remained the major market for Malaysian rubber

goods, accounting for 55% of total rubber product exports.

 2. Demography

According to the United States, the Census Bureau's official residence population on April 1,

2020 was 331,449,281. This includes 50 states and the District of Columbia, but does not

include the population of five unincorporated US territories 4,444 and the property of some

small islands. The United States is the third largest country in the world. The Census Bureau

showed a 0.8% population increase in the 12 months to July 2012. This is higher than in

developed countries, but below the global average of 1.1% per year. The total fertility rate in

the United States in 2020 is 1,638 children per female, which is below the alternative fertility

rate of about 2.1. With a population of over 331 million, it is the third largest country in the

world. The capital is Washington, D.C. And the most populous city is New York City. As a

result, the use of cars will increase as the us population grows. Cars are important in busy

lifestyles in the USA because they are transportation and they can help make many parts of

our daily tasks easier. So, the demand for the car increases, the raw materials for the car will

eventually increase. This is the impact of the demographics on Goodyear tire manufacturers

in the United States.

3. Economic

The US economy is a highly developed free market economy. It is the world's largest

economy in terms of nominal GDP and net worth and the second largest in terms of

purchasing power parity (PPP). In 2021, it will rank 5th in the world in terms of GDP per

capita (nominal) and 7th in terms of GDP per capita (PPP). The United States has the most

technologically powerful and innovative economy in the world. The US dollar is the most

commonly used currency for international transactions and the largest reserve currency in the
world. The United States is the world's largest importer and second largest exporter. In 2019,

the US workforce was approximately 160.4 million, making it the fourth largest workforce in

the world. The private-sector in the United States employs 85% of working Americans.

Governments make up 14% of all workers in the United States. In 2020, The epidemic of

COVID-19 and the resulting economic shutdown caused a problem for all workers. In

October 2021, the national unemployment rate was 4.6%. Moreover, Goodyear tyre

production contributes to the growth of the US economy by providing job opportunities. This

is because the tire manufacturing industry is expected to grow by 13.7% in 2021.

4. Politic

The manufacturing industry in the United States is a force to be reckoned with. Since its

inception during the Industrial Revolution in 1820, the industry has suffered a series of

setbacks, ranging from the Great Depression to the present Great Recession. Despite these

losses, as well as a rapidly changing global market, American manufacturing has

demonstrated its endurance. Modern manufacturing is booming across the United States. The

United States Tire Manufacturers Association is the national trade association for tire

manufacturers in the United States. USTMA successfully fought for safety-enhancing and

pro-competitive elements in the Fixing America's Surface Transportation (FAST) Act, a

federal highway law passed in 2015. USTMA members operate manufacturing operations in

17 states, employ almost 100,000 people, and produce annual sales of more than $27 billion.

Numerous federal and state rules govern tire producers, including those governing safety, the

environment, labour, and commerce, among other things. USTMA collaborates closely with

regulators to keep them informed about new advances, share data, and push for effective
regulation that promotes safety and protects the environment without stifling job creation and

economic progress.

4.0 RECOMMENDATION

According to my analysis, this country has several advantages. One of the advantages is the

high quality of the tyre. As we all know, the United States plays a vital role in global tyre

manufacture, with high expectations. This country is the world's largest tyre exporter every

year, raking in billions of dollars. The United States tyre industry is recognised for producing

a wide range of tyres, particularly the Goodyear brand, which is noted for its longevity and

quality. Goodyear tyres are known for their durable designs and materials. Long-term tread

life warranties are also provided by the company. Some Goodyear tyres, like the Eagle All-

Season, come with an 80,000-mile warranty. Furthermore, Goodyear has gained a reputation

as one of the top tyre companies for its tenacious grip and exceptional responsiveness. As an

international business manager, I highly recommend the CEO that importing tires from the

United States is a very important part as it helps to provide high quality tires. This is

important to minimize vehicle wear and maximize driver and passenger comfort. It reduces

tire wear, improves service life and performance, and improves fuel consumption. Reduce

steering and stability issues in order to improve handling and driving safety.

The second advantage is lower import tariffs. Import tariffs are charges imposed by a

country's customs agents on imports and certain exports. Import tariffs are normally

calculated based on the item's value. Malaysia imposes a tariff rate ranging from 0% to 50%,

based on ad valorem prices. Malaysian customs levies a regular goods and services tax of 6%

on imported items. According to the research, Malaysia was the 22nd largest products export
market for the United States in 2020. In 2020, US goods exports to Malaysia total $12.3

billion, down 6.8% ($892 million) from the previous year and down 13% from 2010.

Moreover, tires will be classified as automobile parts. The main advantage is that tariffs

generate income from imported products and services. A Trade and Investment Framework

Agreement (TIFA) was signed between the United States and Malaysia on May 10, 2004.

The Agreement is the primary mechanism for discussing trade and investment issues between

the United States and Malaysia. On this basis, the import tax from the United States into

Malaysia is 6.1%, which is low compared to other countries. Because of these impacts, I

strongly recommend my CEO to continue importing tires from the US as tariffs will be

lowered and helps us save costs. This allows the United States and Malaysia to maintain

diplomatic relationships.

In the United States, Goodyear is the leading tyre producer, followed by Cooper Tires, which

is the second-largest tyre manufacturer in North America. The United States has taken

advantage of technological developments to improve tyre production. New tyre technologies

are continually being made, and every year there are significant modifications. Innovations in

tread patterns, sidewall design, and overall tyre manufacturing have made today's high-

performance tyres more dependable than ever before. Tire manufacturers collaborate with car

designers to develop futuristic tyres. Tiremakers have made a major commitment to

manufacture ever more technically sophisticated tyres (for example, with sensors to assess

tread depth, temperature, and send real-time alerts to drivers), run-flat tyres including self-

sealing tyres, self-inflating tyres, air-free tyre innovations, and decreased noise or noise-

dampening tyre technology (important for quiet electric vehicles). The technological

influence on tyre production to make these technically sophisticated tyres includes new

moulds, laser carving tools, new test equipment (particularly for noise), and material
modifications such as various resins, silicas, and aramid fibres. Based on this, I strongly

suggest the United States as the best place to import products from since the use of

technology in their manufacturing represents the management strategy they have employed to

maintain their position as one of the world's major tire-industry. This would be a good

opportunity for us to get tyre supplies on schedule and without flaws.

Although there are numerous benefits of import from USA, the risk must be considered.

Importing tyre goods from other countries when there is a trade imbalance can contribute to

the deterioration of the domestic economy as well as global markets. For instance, a rise in

the value of importing tyre goods from various countries, such as the United States, compared

to the value of exporting, might result in job losses for employees in the respective markets,

contributing to an increase in the value of unemployment in that sector. Commodity imports,

including such disputes in local values as a result of adherence to society standards, have

actually increased. Local manufacturers may be destroyed as a result of low import levies and

imports from other countries such as the United States. Local enterprises are unable to sustain

and are unable to minimize their commodity costs below their production costs while still

maintaining their responsibilities to labour unions.

5.0 CONCLUSION

In conclusion, based on the analyses of Goodyear Tire Company United states and Goodyear

Tire Brands Malaysia in terms of their company, country, product deliberation, and industry,

we have clearly seen how it was founded in the United States and how it has been brought to

Malaysia and developed to the present day. Based on the information, we could clearly

comprehend the importance of the tyre business to the United States since it is one of the
largest earnings and the United States' historical, demographical, economic, and political

environment in the tyre industry. Finally, the reasons why and need of importing tyres from

the United States, as well as the risks we must face, were properly explained. By this, we

should realise that importing is necessary to ensure the sustainability of our community's tyre

supply, but it must also be controlled.

6.0 REFERENCE

1. Wikipedia contributors. (2021, November 20). Goodyear Tire and Rubber Company.
https://en.wikipedia.org/wiki/Goodyear_Tire_and_Rubber_Company

2.United States Trade Representative 2021 National Trade Estimate Report On Foreign Trade
Barriers Acknowledgements. (N.D.).
https://ustr.gov/sites/default/files/files/reports/2021/2021NTE.pdf

3. Our Accomplishments. (n.d.). Goodyear Corporate. Retrieved November 26, 2021, from
https://corporate.goodyear.com/us/en/responsibility/our-accomplishments.html

4. Markets, R. and. (n.d.). United States OTR Tire Markets, Analysis & Forecasts, 2016-2020
& 2021-2026. Www.prnewswire.com. Retrieved November 26, 2021, from
https://www.prnewswire.com/news-releases/united-states-otr-tire-markets-analysis--
forecasts-2016-2020--2021-2026-301383023.html

5. IBISWorld - Industry Market Research, Reports, and Statistics. (n.d.).

Www.ibisworld.com. Retrieved November 26, 2021, from
https://www.ibisworld.com/industry-statistics/market-size/tire-manufacturing-united-states/
6. McIntyre, J. E. (2021). 40 Years and More of Tire Science and Technology: A History of
The Tire Society. Tire Science and Technology. Published.
https://doi.org/10.2346/tire.21.20015

7. About us. (2021, October 26). GOODYEAR.

 https://www.goodyear.com.my/about-us

8. Wikipedia Contributors. (2019, January 5). United States. Wikipedia; Wikimedia

Foundation. https://en.wikipedia.org/wiki/United_States

9. U.S. Relations With Malaysia - United States Department of State. (2018). United States
Department of State. https://www.state.gov/u-s-relations-with-malaysia/

10. How tire is made - material, history, used, processing, parts, components, composition,
steps, product. (2014). Madehow.com. http://www.madehow.com/Volume-1/Tire.html