Goodyear to Cut Costs up to $1 Billion

Goodyear Tire & Rubber Co. announced Friday, September 23, 2005 that they would be cutting their costs by about $1 billion. They plan to do this by closing plants and importing more materials from Asia to avoid the cost of raw materials in the United States. Due to the high oil prices, the cost of synthetic rubber, steal, and natural rubber have increased. After having rough years in 2002 and 2003, Goodyear is trying to avoid the high costs of the American economy. Goodyear's Chief Executive Robert Keegan stated, "Our turnaround is on track and will continue to evolve." Is the uncertainness of companies in the United States going to cause a large amount of these companies to begin importing from other countries? Do you think other businesses will follow Goodyear’s role or not? How do you think this is going to affect the United States economy? How will the economy survive if businesses begin relying on other countries to be profitable?