Recently, Goodyear Tire announced that it will lay off 5% or about 500 positions in order to save costs, in response to the challenging industry environment and cost pressures brought about by inflation.

Agence France-Presse reported that Michelin also plans to cut 451 jobs in France in 2023, citing a memo sent to unions by Michelin.

With the increasing uncertainty of the global economic outlook, the wave of layoffs of large enterprises has intensified. Following technology and financial enterprises, it has spread to the tire industry. Major enterprises around the world have slimmed down for the winter. This may become the biggest crisis facing the tire industry in 2023.

"Given the markedly weaker industry backdrop, particularly in Europe, our fourth quarter results came in below expectations," said Richard J. Kramer, Goodyear chairman, chief executive and president. European Tire and Rubber Manufacturers Association (ETRMA) data According to statistics, due to the impact of the Russia-Ukraine war, the sales volume of the European passenger car tire replacement market was 49.933 million, a decrease of 13% compared to 2021. In addition to truck and bus tires, the sales of all types of tires in the European tire market have experienced double-digit declines, and the decline in agricultural tires has reached 36%, with sales of only 159 million.     

Affected by the Russian-Ukrainian war, the performance of Goodyear tires also declined sharply. Goodyear's EMEA (Europe, Middle East and Africa) tire sales fell 12%, the data showed. Combined with the impact of inflation and soaring energy costs, Goodyear expects its EMEA business unit to post an operating loss of about $80 million in the fourth quarter. The sharp decline in performance has also prompted international tire brands to lay off employees and close some factories to save costs.

The global supply chain crisis and economic downturn brought about by the Russo-Ukraine war not only had a major adverse impact on international brand tires, but also a major disaster on Chinese tire companies. Because the European, Middle East, and African markets are also the main sales markets for Chinese tire exports. According to the analysis of the export market, from January to May, my country's tires were exported to 215 countries and regions, including the European Union (963 million US dollars), the United States (727 million US dollars), Mexico (365 million US dollars), Saudi Arabia (316 million US dollars), Australia ( 277 million US dollars), Canada (253 million US dollars), Russia (253 million US dollars), the United Arab Emirates (235 million US dollars), the United Kingdom (215 million US dollars) and Malaysia (174 million US dollars) are the top ten export markets of my country's tire industry.

In 2023, the global economic growth rate is slow, European and American countries are facing the risk of recession, and it may be difficult to effectively improve tire exports. With the layoffs of international big-name tires for the winter, Chinese tire companies, especially Chinese tire companies that focus on foreign trade, will face survival in 2023. pressure. Fortunately, in recent years, the Chinese market and the European and American markets have just the opposite trend. When the global epidemic spread in 2020 and 2021, China took the lead in controlling the epidemic and became one of the few safe production places for tires in the world.

In 2022, the domestic epidemic situation will be repeated, domestic demand will continue to be sluggish, the global epidemic situation will be released, the economy will recover, and the demand for foreign trade tires will increase significantly, which will successfully transfuse domestic tire factories. Facing 2023, when the foreign trade market is facing challenges, and the domestic economy recovers rapidly after the domestic epidemic is lifted, the domestic market will be a bright spot for tire sales in 2023.

At the same time, under the background of the economic downturn in the European and American markets in 2023, the consumption power of residents will be greatly reduced. The high-quality and cheap Chinese tires will be more likely to impress the European and American people. Excellent Chinese tire companies will gain more in the new year. Big market share!