Goodyear, the last remaining U.S. tire manufacturer, has announced plans to close its Fayetteville, North Carolina plant by the end of 2027, a move that will impact up to 1,700 employees. The decision, reported by ABC 11 on Tuesday, comes as the company grapples with significant financial losses and industry-wide challenges.
Plant Closure Details
The Fayetteville facility, which has been operational for more than 50 years, is one of four Goodyear plants that produce six different lines of consumer tires. It is the fifth-largest employer in Cumberland County. A company spokesperson stated that the closure is necessary to keep pace with changes in the tire industry.
Fayetteville Mayor Mitch Colvin expressed disappointment but emphasized resilience: "While this news is disappointing, Fayetteville has always risen to meet challenges head-on. We are redoubling our efforts to connect our workforce to new opportunities and ensure our residents are prepared for the jobs of tomorrow."
Financial Struggles
The closure announcement follows Goodyear's May 7 earnings report, which revealed $249 million in losses for the first three months of 2026. The company experienced sharp declines in its North and South America markets, with net sales dropping by more than half and tire production falling 11.6 percent year-on-year. CEO Mark Stewart attributed poor U.S. sales to rough winter weather and "a cautious consumer."
Industry Headwinds
The U.S. tire manufacturing industry is facing stiff challenges in 2026. The Iran War has driven oil prices higher, impacting tire production costs. Stewart noted, "The conflict in the Middle East has introduced more uncertainty, particularly around raw materials and potential end market demand. When you add that to already weak industry trends, it creates a challenging backdrop."
Oil is a key ingredient for synthetic rubber and other components in tire production. According to Tire Review Magazine, every $10 increase in oil prices raises consumer tire production costs by up to 12 percent. The publication warned that manufacturers may respond with price increases, reduced incentives, or a shift toward higher-margin products.
The Independent has contacted Goodyear and the U.S. Tire Manufacturers Association for further comment.
