Goodyear says COO Kramer will become CEO, succeeding Robert Keegan who keeps chairman title

Kramer elected to succeed Keegan as Goodyear CEO

CLEVELAND — Goodyear Tire & Rubber Co. announced Wednesday that the company’s chief operating officer, Richard Kramer, has been named the tire maker’s chief executive after being groomed to take over the company.

Kramer, 46, succeeds Robert Keegan, who will remain executive chairman of the board. Kramer, who became COO last June, spent the previous three years leading the Akron, Ohio-based company’s North American tire business. He will become CEO effective April 13 at the company’s annual meeting.

Keegan said he has been working with Kramer for more than 10 years.

“I’m picking my guy, basically,” he said.

Keegan glossed over the details of the CEO search process, but said he and the board have been working on the plan for Kramer to succeed him for more than a year.

“Some people might have been a little surprised by the timing,” he said. “But other than that, internally, this is the way people thought it would go.”

Keegan, who has been president and CEO since 2003, said he is not ready to retire just yet, though he turns 63 in July. He said the details of his new role are still being worked out.

Last week, Goodyear reported an 8 percent increase in volume due to growing global demand.

The company said it earned $107 million, or 44 cents per share, on sales of $4.4 billion in the three-month period that ended Dec. 31. Goodyear lost $330 million, or $1.37 per share, on fourth-quarter 2008 sales of $4.1 billion.

In 2009, Goodyear lost $375 million, or $1.55 per share, on sales of $16.3 billion, compared with a 2008 loss of $77 million, or 32 cents per share, on sales of $19.5 billion.

Goodyear reduced its work force by about 5,700 in 2009 to about 70,000. The company wants to reduce production by 15 million to 25 million units over the next two years.

The tire maker has nearly 70,000 employees and has production facilities in 24 countries.

When asked about his plans for the company’s future, Kramer said Goodyear must continue to cut costs, drive innovation and explore emerging markets in Asia.

Goodyear shares rose 12 cents to $12.86 in midday trading.

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