Rich Kramer, the Chairman, Chief Executive Officer and President of The Goodyear Tire & Rubber Company provided remarks to the tyre dealers during a conference which was enlightening.
Before Speaking about what the conference was about, there is a necessity to understand the fact that tyre dealers are the most important part of a tyre industry. The tyre dealers sometimes are in high motivation to create fortunes for both the customer as well as the industry itself. However, there are some days in their lives when they too are not motivated. This is when the tyre dealers need a pep talk to realize their true potential once again and it is at this juncture, Rich Kramer stepped in.
Rich Kramer, the tyremaker’s chairman, CEO and president, started by talking about the fact that tyre dealers showed the essential role they play in the economy.
“You kept your stores open. You kept delivering tyres. You kept fleets on the road. You made it possible for people, food, medicine and critical supplies to get where they needed to be most.
“We’ve always known that each of you is essential to keep the world moving. Well, now everybody else knows, as well. Millions of people counted on you and you came through just as you always do,” said Kramer.
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He highlighted some of the economic challenges that the tyre manufacturers faced in the year 2009. He mentions that the USA and the world fell into the 'Great Recession', wherein rising unemployment rates, decreasing sales of new cars and plunging consumer confidence took place in the year 2009. He mentioned that similar circumstances as seen in the year 2009 is witnessed in the year 2020. However, the manufacturers have once again stood strong during these harsh times.
“The outlook was dire, the prognosis was worse and we worried that life was never going to be the same,” Kramer said. “But we came through it.”
“Today we find ourselves in a similar situation, and although it may be hard to visualize now, things in fact will get better just as they did in 2009. We saw the beginnings of that in the third quarter and while we still have a ways to go, it’s clear better days are ahead as we overcome this virus.
“I also believe the rebound will be different than in 2009 in a critical way — everything will happen faster,” Kramer said.
He reminded dealers of how quickly they adapted to the situation and brought in new technologies and new services to their customers.
“The changes in behavior and expectations driven by technology have taken root and will continue long after the pandemic is over. In short, there’s no going back. If you picture the inflection point as the apex of a hill, we’re over the top, on the other side and picking up speed.”
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Kramer narrowed down his idea of a better future into a formula: Redefining success + the value of ‘and’ = Partnership with Goodyear
Redefining success:
“You had to adapt to new technology. You had to rethink your offerings. You had to deliver on what your customers expected whether they’re consumers or commercial fleets. And you did it. I’m sure that in a matter of weeks you changed your operation in ways that ordinarily would have taken you months or even years.
“You did these things fast and you did them well, and you’ll keep doing them in the years ahead. You’ve redefined normal for your customers and for your own operation. It’s impossible and frankly unexciting to imagine going back to the way things were.”
Value of ‘and’:
According to Kramer, business owners must manage the daily operation, but also plan for the future of business operations which includes keeping an eye on the transformation in the auto industry.
Kramer has seen a positive growth in the electric vehicles and hybrid technologies which is why the tyre dealers must focus on this sector of the automobile industry. A combined $76 billion in investments was announced by General Motors, Ford and Volkswagen. In addition to this, newer vehicles are to be introduced in the year 2021 which is why the company should focus on becoming OEM partners.
“Since August of this year, Tesla’s market valuation has exceeded the value of the entire European auto industry. Now that’s not a trend - that's reality.
“So run your business for today, but manage it for tomorrow. The two disciplines aren’t mutually exclusive,” He added
Partnership with Goodyear:
Kramer said Goodyear has “already taken the lead on preparing for the coming of electric vehicles, autonomous vehicles, connectives vehicles, fleets. We’re redefining success based not on what our business looked like in the past, but the ways we can lead in the future.”
But he also mentioned that Goodyear like any other tyre maker has what it takes tyre dealers to succeed today, “whether it's great products, innovative marketing and sales tools, or fleet management services, tire maintenance programs and total mobility solutions.”
He concluded by stating the fact, “these elements will serve as the fuel that keep us driving forward and define future levels of success. Choosing the right business partner has always been important, but perhaps never as important that it is today. We’re leading aggressively and want you there with us to win together now and in the future.”
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