The last remaining U.S. tire manufacturer is set to close one of its 18 plants.
Goodyear is planning to close its Fayetteville, North Carolina, plant by the end of 2027, according to a report by ABC 11 Tuesday. The closure will impact up to 1,700 workers, Goodyear told The Independent in an email.
Goodyear’s decision to close the plant is based on its need to keep up with changes to the industry.
“This difficult action is necessary to strengthen Goodyear’s ability to compete in today’s marketplace and support the long‑term health of the business,” the company said.
The facility is one of four in the brand’s portfolio that produce the company’s six different lines of consumer tires. It has been in operation for more than five decades and is the fifth-largest employer in the county.
“While this news is disappointing, Fayetteville has always risen to meet challenges head-on,” Fayetteville Mayor Mitch Colvin said in a statement. “We are redoubling our efforts to connect our workforce to new opportunities and ensure our residents are prepared for the jobs of tomorrow.”
The plant closure announcement comes shortly after Goodyear reported on May 7 some $249 million in losses in the first three months of 2026.
The company faced significant declines in its North and South America markets. Net sales fell by more than half and tire production dropped 11.6 percent year on year.
Rough winter weather and “a cautious consumer” contributed to poor sales in the U.S., CEO Mark Stewart said in the company’s May 7 earnings call.
The U.S. tire manufacturing industry is facing stiff headwinds in 2026. The Iran War has sent oil prices soaring, which has impacted tire production costs and created a “challenging” environment, Stewart said.
“The conflict in the Middle East has introduced more uncertainty, particularly around raw materials and potential end market demand,” he said. “When you add that to already weak industry trends, it creates a challenging backdrop.”
Oil is a key ingredient for synthetic rubber and other ingredients in tire production, according to industry publication Tire Review Magazine.
For every $10 increase in oil prices, consumer tire production costs go up as much as 12 percent, Tire Review noted.
These conditions are likely to create more struggles for Goodyear and other tire manufacturers.
“As higher-cost materials, fuel, and freight work their way through the system, manufacturers eventually have to respond,” Tire Review wrote. “That will likely come in the form of price increases, reduced incentives, or a shift toward higher-margin products.”
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