Goodyear’s Transformation Under Mark Stewart: Can the Blimp Sell Tires?
When Mark Stewart took over as CEO of Goodyear Tire & Rubber Co. in January 2024, he had one burning question: Does the iconic Goodyear blimp actually sell tires? The answer, Stewart discovered, was a resounding yes. For over a century, Goodyear’s helium-filled airships have been a symbol of the brand, flying over major events and landmarks. But Stewart wanted to ensure that consumers made a direct connection between the blimps and Goodyear’s products. As the company celebrated the 100th anniversary of its first blimp, Pilgrim, in 2025, Stewart emphasized the importance of leveraging this powerful marketing icon to drive sales. The blimp, he argued, was not just a nostalgic relic but a tool to promote Goodyear’s tires and services, both in the U.S. and Europe.
However, the blimp question was just the beginning of Stewart’s challenges. Goodyear, like many legacy companies in the automotive industry, is undergoing rapid transformation. The rise of new technologies, increased competition from low-cost manufacturers in countries like China, and investor skepticism about the company’s ability to modernize have created a perfect storm of change. In response, Stewart unveiled “Goodyear Forward,” a two-year transformation plan aimed at doubling the company’s operating income margin to 10%, cutting costs and revenue by $1.5 billion, and generating $2 billion from asset sales. The plan also includes reducing the company’s debt by $1.5 billion and investing in cutting-edge technologies like artificial intelligence and 3D printing to streamline production and development.
The Blimp: A Cultural Icon with a Purpose
The Goodyear blimp has come a long way since its first flight in 1925. From its early days as a tool for military surveillance during World War II to its current role as a marketing icon, the blimp has become synonymous with the Goodyear brand. Over the years, the company has built more than 300 blimps, each a testament to advancing technology. Today’s blimps, introduced in 2014, feature a “fly-by-wire” system that eliminates many physical components, making them more efficient and easier to pilot. These modern airships, designed by Germany’s Zeppelin Luftschifftechnik GmbH, can reach speeds of up to 73 miles per hour and are powered by three four-cylinder engines. While the blimp may seem like a relic of the past, it continues to play a vital role in Goodyear’s marketing strategy, appearing at high-profile events and reinforcing the company’s brand identity.
Despite its cultural significance, the blimp is only one piece of Goodyear’s transformation puzzle. The company is also focusing on innovation, particularly in the development of high-performance tires for vehicles like the Tesla Cybertruck and luxury SUVs. Goodyear’s investment in a state-of-the-art facility in Oklahoma, which will increase production capacity by 10 million units annually, is a clear signal of its commitment to growth in the high-end tire market. However, the company faces stiff competition from global rivals like Michelin, Bridgestone, and Continental, as well as increasing pressure from low-cost imports, particularly from Southeast Asia.
Goodyear Forward: A Path to Efficiency and Growth
Goodyear’s transformation plan, “Goodyear Forward,” is ambitious in scope and targets multiple areas of the business. The plan includes cost reductions, asset sales, and debt reduction, all aimed at making the company more efficient and profitable. Stewart has also emphasized the importance of regaining focus on Goodyear’s retail business and expanding its fleet business, which includes telematics and other advanced technologies. The company has already seen some success, reporting five consecutive quarters of margin growth and its best retail performance in over 20 years. However, investors remain cautious, with Goodyear’s stock down 33.4% since Stewart took over. The company’s ability to deliver on its targets and convince investors of the sustainability of its changes will be crucial in the coming years.
Global Challenges and the Rise of Low-Cost Imports
Goodyear’s transformation is taking place against a backdrop of significant global challenges. The company operates in 20 countries, with major manufacturing facilities in North and South America, Asia-Pacific, and Europe. While its international presence provides opportunities for growth, it also exposes Goodyear to risks like tariffs, trade tensions, and geopolitical uncertainty. The rise of low-cost imports, particularly from Southeast Asia, has been a major challenge for the company. Goodyear’s CFO, Christina Zamarro, noted that low-end imports grew by 11% in 2024, outperforming the U.S. tire industry. These imports have put significant pressure on Goodyear’s consumer replacement business in the U.S., Europe, and Brazil. Stewart has acknowledged the challenge, stating that the influx of low-end tires has been unprecedented in recent years.
Innovation and the Future of Tires
Despite these challenges, Goodyear is investing heavily in innovation to stay ahead of the curve. At its headquarters in Akron, Ohio, the company has developed a cutting-edge simulation machine that allows it to test tire designs virtually, reducing research and development costs and time. This technology has already been used to secure high-profile deals, including Goodyear’s first launch on a Ferrari sports car in decades. The company is also exploring new concepts, such as airless tires, which could revolutionize the industry. Goodyear’s commitment to innovation is part of a broader strategy to position itself as a leader in the tire industry, capable of adapting to changing market demands and delivering value to its customers.
As Goodyear looks to the future, the success of its transformation plan will depend on its ability to execute on these initiatives and communicate its progress to investors. Stewart remains optimistic, pointing to the company’s recent margin growth and improved retail performance as evidence that Goodyear is on the right track. However, the road ahead will be challenging, and the company must continue to prove itself to skeptical investors. Whether through the iconic blimp or cutting-edge innovations, Goodyear is determined to show that it is more than just a legacy brand—it’s a company ready to embrace the future.
