Richard J. Kramer has been tapped to be the new CEO of Goodyear Tire and Rubber Company, the world’s number three tire manufacturer. Kramer, who was previously the executive vice president and chief financial officer of Illinois-based Caterpillar Inc., will succeed current CEO and president Richard J. Kramer at the helm of Goodyear.
Goodyear, which was founded in 1898, has seen a tumultuous few years, with revenues falling steadily going back to 2006 and its stock price dropping over the last 12 months. In addition to financial issues, the company has faced a sluggish tire market and a disruptive labor dispute with its largest manufacturing plant in 2018.
Kramer, a Pittsburg native, was the CEO of Cummins Engine Company, a leading diesel engine manufacturer, from 2002 to 2007, and served as the chairman of Rotary International from 2017-2018. He has also been on the board of directors of two publicly-traded companies, Afni and Avnet, as well as several board leadership roles with privately held companies.
Kramer brings a wealth of knowledge and experience to his new position at Goodyear. First and foremost, he is a highly experienced financial and operational leader, having served in the CFO roles of both Caterpillar and Cummins. He also has a successful track record in terms of cost reduction and leveraging resources meaningfully, both skills that are likely crucial to turning around Goodyear’s current fortunes.
Kramer’s expertise in strategic and operational planning, combined with his knowledge of advanced marketing techniques, make him well suited to identify areas of cost efficiencies, suggest and implement process improvements, and improve the overall value proposition of Goodyear’s products and services.
In addition, Kramer has a proven history of developing successful strategies for increasing market share and strengthening customer relationships, something Goodyear badly needs given the challenges it has faced in the past.
Kramer’s problem-solving and relationship-building will also be paramount when dealing with Goodyear’s current labor issues. By seeking to create a better environment for communication between management and unionized workers, the success of Goodyear’s operations could be greatly enhanced.
As well, Kramer is experienced in leading transformation efforts, which means that he is well equipped to work on profitability initiatives, expanding global presence in emerging markets, and digital advancements. Making Goodyear’s many legacy systems more agile and efficient will be key to its long-term success.
Kramer has also been credited with bringing a surprisingly new and creative approach to many of the roles he has led. He has demonstrated a tireless commitment to innovation and improving the customer experience. This, combined with his in-depth understanding of the digital and physical worlds, is invaluable in this day and age.
In short, Richard J. Kramer appears to be the ideal leader for Goodyear at a time when the company’s future successes depend on embracing new opportunities and abandoning traditional business processes. His deep experience in finance, operations, and general business strategy, along with his fresh perspective, make him an impressive choice to head the struggling tire manufacturer. With his leadership, Goodyear has the potential to evolve into a stronger, more vibrant company, leading the industry in product innovation, customer service, and financial stability.
