Solid market shares in the U.S. and Europe; Diverse product line with strong brand recognition; Extensive distribution with long-standing relationships; Global geographic diversity; and Ability to reduce costs through recent labor union contract. Intermediate-term liquidity challenges; Intense competition from large mass producers and smaller, more focused players; Limited pricing flexibility; High fixed costs and excess manufacturing capacity; Exposure to volatile raw material and energy prices; Exposure to varying degrees of cyclical demand; and Weak profitability and cash flow generation of largest business unit, North American Tire. The ratings on The Goodyear Tire&Rubber Co. reflect the company's very weak financial profile, characterized by weak cash flow generation, poor earnings, onerous debt maturities, and heavy underfunded employee benefit liabilities. These
