By Denna Bowman
Keeping inventories and capital expenditures in check will be a major priority for two leading tyres manufacturers next year.
French tyres maker Michelin and US manufacturer Goodyear have both revealed the initiative as part of their plans to ride out the global recession.
In its recently published financial results, Michelin said it will continue to cut inventory levels and reduce capital expenses, an estimated 700 million euros annually.
Michelin’s goal is to generate “positive free cash flow,” according to company officials.
Meanwhile, Goodyear Chairman, CEO and President Bob Keegam recently stated that it is not Goodyear’s intention “to return to the levels of inventory we had in 2008.”
Goodyear closed two of its distribution centres and also stopped using several public warehouses in 2009. It plans to exit more public warehouses in 2010.
The tyres industry has suffered falling sales and demand during the worldwide depression, but there are signs of recovery on the horizon.