Goodyear tyres is set to announce cost-cutting plans to cope with the slump in global wide sales.
The tyres giant is expected to reduce the amount of tyres available for sale, partly by adjusting production at factories.
Goodyear has been hardest hit by the fall in 2008 sales in the original equipment market, which plummeted by 22% in North America and 4.5% in Europe compared with 2007.
However, executive vice president and chief financial officer Darren Wells said the company was looking ahead and focusing on new products, including a tyre designed for fuel efficiency.
Goodyear will be announcing is cost-cutting plans later this month, when it releases its full-year earnings report.
The news coincides with Italian tyre maker Pirelli confirming it will cut workers hours at its Carlisle plant again.
Production staff on a 40-hour week at the Dalston Road factory will see that reduced to 32 hours from Monday until the end of April.
Pirelli said the decision was taken in response to the “spectacular fall” in production in the car industry and the subsequent fall off in demand for tyres.
However, etyres, the UK’s No 1 online mobile tyre fitting firm, is experiencing 30% year on year growth in sales as more consumers turn to the internet to save money on tyres.
Vehicle owners still need to buy tyres, but they are discovering that because web-based businesses, like etyres, have low over-heads they can pass the savings onto customers in the form of lower prices, without compromising on quality.