Sumitomo just closed their Buffalo factory

[ripcord]

Here's a part that confuses me. I recently helped my father buy a set of new tires for his jeep. It came down between a set of Goodyear comforttred (or whatever the current name is) and Cooper Endeavor Plus. The Coopers were at around $50 per tire cheaper, made in the USA, and had better reviews. The Good years were foreign made and more expensive. In the past, I would just chalk this up for different companies in their dynamics. But, with Goodyear owning Cooper, this is in essence the same company. Why is it that Goodyear has to charge more money for a foreign-made product that isn't as good as a US-made product by one of their sister divisions. I think there's more to this than what meets the eye.

Never underestimate the foolishness of marketing executives.

 

[The Critic]

Here's a part that confuses me. I recently helped my father buy a set of new tires for his jeep. It came down between a set of Goodyear comforttred (or whatever the current name is) and Cooper Endeavor Plus. The Coopers were at around $50 per tire cheaper, made in the USA, and had better reviews. The Good years were foreign made and more expensive. In the past, I would just chalk this up for different companies in their dynamics. But, with Goodyear owning Cooper, this is in essence the same company. Why is it that Goodyear has to charge more money for a foreign-made product that isn't as good as a US-made product by one of their sister divisions. I think there's more to this than what meets the eye.

The ComfortDrive's are a higher-end tire than the Endeavor Plus.
Just because something is made in the USA does not mean it commands a higher price.

 

[Enthusiast]

The ComfortDrive's are a higher-end tire than the Endeavor Plus.
Just because something is made in the USA does not mean it commands a higher price.

Higher end based on what exactly?

Building something in the USA is supposed to be more expensive so it is more logical
to make entry level products made overseas and higher end in the USA.

 

[surfstar]

I've got to get around to watching that movie some day.

Spoiler - we're living it. It's like a documentary telling us of the future.

That’s absolutely disgusting to do to people and their families. This is happening everywhere it seems these days Georgetown Sc shutting down the paper mill that’ll affect 700+ employees and their families.

Capitalism. "People" are just part of the machinery used to make money.

 

[4WD]

Plenty of tire factories have opened in the US recently. Nokian and Hankook in TN, Kumho in GA, Giti in SC. And there are others I can't think of right now. Some of those weird off-brands are even made in the US, too.

Goodyear has had some problems, and a lot of people on here complain about their tires too.

In fact, Goodyear used to own the closed Sumitomo factory. The two companies supplied tires to each other as well. That relationship ended a few years ago, with Goodyear handing the factory to Sumitomo.

https://en.wikipedia.org/wiki/Dunlop_Tyres

 

[4WD]

I've spoken of it before, my wife works at a firm that specializes in consulting troubled companies among others things. My wife has been involved in a few plant closures which I can't name. The modern thing is to close a facility abruptly without notice and get around the WARN act by paying the employees the 60 days instead of working them. If a plant announces they are closing and keeps producing a product, workers often sabotage the product and create a huge liability.

Does anyone here want to buy a set of tires made by workers knowing they are losing their job? Pepsi has a very good reason not to keep a bottling or syrup plant open when workers know of a looming closer.

It’s similar with our individual employees - if we have one hit bottom in ranking - they are sent home with 90 days severance pay - handed their final benefits package - and given an outplacement representative …
But, yeah - they go home …

 

[Egg_Head]

All those plants are within distance of the South’s auto plants - though Hankook is in TN(and near VW Chattanooga/Nissan Syrmna, Giti is in SC, it’s only hours away from Alabama, Georgia and Mississippi - Alabama being home to Honda, Hyundai(Kia’s in Georgia) and Mercedes. Mississippi has a Toyota(Blue Springs) and Nissan(Canton) plant. Those tires get shipped to a 3PL to be mounted and sequenced for assembly.

Giti is not an OE supplier but your point is taken.

 

[Egg_Head]

I've spent more time than the average bear in tire plants. Posts #7 & #23 cite the most likely reasons for the closure. I feel for the workers and their families but Stevie Wonder could have seen this one coming. There is a reason SC has more tire plants and produces more tires than any other state. Goodyear shuttered it's plant in Gadsden, AL that had been there since 1929.

 

[jjf729]

Giti is not an OE supplier but your point is taken.

Pretty sure Giti is an OE supplier to Volkswagen, or at least has been in the past few years.

 

[Finklejag]

Giti is not an OE supplier but your point is taken.

Giti has been the OE supplier for VW for years. They were just awarded the OE tire for the id.Buzz.

 

[Egg_Head]

You are both correct, Giti Europe will be producing the OE tire for the id.Buzz. Giti USA produced tires for VW USA in 2018 & 2019, that plant for FY2023, according to Modern Tire Dealer, is not an OE producer.

 

[nthach]

You are both correct, Giti Europe will be producing the OE tire for the id.Buzz. Giti USA produced tires for VW USA in 2018 & 2019, that plant for FY2023, according to Modern Tire Dealer, is not an OE producer.

I’ve seen Gitis on a new Tiguan/Taos recently.


I have a feeling Giti wanted to get ready for another tariff. But Bridgestone Retail Operations Americas is pushing a Kumho-made tire instead of the Giti brands Primewell/Dextero/GT Radial for their budget buyers.

 

[JavierH19]

Let me guess the CEO got a pay raise for his incredible work in this business decision to boost profitability... There's a reason why employees are called human capital/asset. No different than the old machines they got bolted to the floor in the c suite's eyes.

 

[Dave Hess]

Spoiler - we're living it. It's like a documentary telling us of the future.

Capitalism. "People" are just part of the machinery used to make money.

We are all puppets controlled by the corporate puppet masters pulling all the strings…,

 

[jjf729]

I’ve seen Gitis on a new Tiguan/Taos recently.


I have a feeling Giti wanted to get ready for another tariff. But Bridgestone Retail Operations Americas is pushing a Kumho-made tire instead of the Giti brands Primewell/Dextero/GT Radial for their budget buyers.

Most Passats also came from the factory with Giti tires.

 

[k1xv]

it might be a good decision for consumers to close a plant immediately. I would imagine, if you told the employees the plant would stay in operation and then close after 60 days, the productivity rate would fall to zero, along with the quality of product produced. just pay em for the 60 days and send then home to look for new jobs.

 

[Pew]

Two thoughts:

1) The situation is horrible. I feel bad for the workers and their family.

2) Capitalism.

 

[nthach]

We are all puppets controlled by the corporate puppet masters pulling all the strings…,

It reminds me of a certain Metallica song.

 

[Dave Hess]

Most Passats also came from the factory with Giti tires.View attachment 249646

I’ve never heard of these tires until now.

 

[PandaBear]

The ComfortDrive's are a higher-end tire than the Endeavor Plus.
Just because something is made in the USA does not mean it commands a higher price.

That and also economy of scale. Sometimes a larger volume means you can do better manufacturing cost reduction as well as automation so fewer workers are needed per dollar of product made.

Personally I don't understand why people think made in US is automatically better either, as it just means the company is willing to spend US labor cost instead of foreign labor cost, and it could be because they are selling higher end products (so they can use higher end labors), or they are so automated it makes no sense to off-shore it to save money on labor, or they are new designs not mature enough to off shore, or old designs with finite lifecycle left and is not worth to offshore.