Goodyear Tire & Rubber Co. has made the difficult decision to stop making tires in Venezuela. As part of its severance package to the employees, everyone will receive 10 tires each.
When employees arrived at work this week for work at the company’s plant in the City of Valencia they saw a letter posted to the door that said “Goodyear Venezuela has been forced to cease operations.”
“Goodyear-Venezuela has made the difficult decision to stop producing tires,” company told The Hill in a statement. “Our goal had been to maintain its operations, but economic conditions and U.S. sanctions have made this impossible.”
The plant produced some 1,000 tires a day, but a short supply of materials and soaring costs forced the shutdown. Goodyear is the latest company to pull out of the crisis-stricken South American country. Economic conditions in the country have deteriorated in recent years, leading several major companies to close up shop. Ford began offering buyouts to its employees last week at its Venezuela operations.
One employee confirmed to Bloomberg that the staff of over 1,200 employees were being laid off. Eduar Bremo, a member of Goodyear’s factory-workers union, said that the company is paying severance packages which will include 10 tires - hugely valuable item in shortage-wracked Venezuela.