Goodyear's decision to stop supplying race tires to
CART and the IRL is examined by Timothy Aeppel of the WALL
STREET JOURNAL, who reports the company said that the
"emergence of two" open-wheel racing series "drove up the
cost of participating," since two "developmental teams" were
needed. Goodyear GM for Global Race Tires Stu Grant said
that CART and the IRL have "specifications that differ
enough in their details to make it impossible for one" team
to work in both areas. But "critics" say that the company
made the move "because of its poor performance in the face
of competition" from Firestone. Aeppel writes that the move
"comes at a time when Goodyear is struggling to contain
costs and going through the bumpy process of integrating"
recently acquired factories. Goodyear "refused to say how
much it would save from pulling out" of the series and added
that "it would consider re-entering open-wheel racing, but
only if" CART and the IRL merge (WALL STREET JOURNAL,
10/27). Meanwhile, Grant "issued a flat denial" to reports
that Goodyear contacted CART "about the possibility of
developing an exclusive-supplier contract." Grant: "That
speculation is out there, but we never approached CART."
Goodyear will eliminate 60 jobs in Akron as a result of the
move. Also, Goodyear was one of four companies "yanked"
yesterday from the Dow Jones industrial average, of which it
had been a member for 69 years (AKRON BEACON JOURNAL,
10/27). Shares of Goodyear fell 3 15/16 to 41 1/4 in
trading of 2.45 million, three times the company's three-
month daily average (BLOOMBERG NEWS, 10/27).
A FOCUS ON NASCAR? While Grant said Goodyear "will put
some additional people and some additional resources into
NASCAR," with which it has an exclusive deal through 2003,
"some observers believe" the decision to leave CART and the
IRL, along with last year's withdrawal from Formula One,
"signifies evolving priorities on the part of the
manufacturer." Bridgestone/Firestone Motorsports Dir Al
Speyer said that "he would not be surprised if Goodyear
withdrew from NASCAR in the future." Speyer: "When the
upper management loses interest in racing, it tends to cover
all racing, not just one form" (AKRON BEACON JOURNAL,
10/27). In Indianapolis, Robin Miller writes that Goodyear
Chair Sam Gibara, who replaced Stanley Gault in '96, "is not
thought to be an ally of motorsports" (INDY STAR, 10/27).
