Goodyear to Close North Carolina Plant, Citing $249M Quarterly Loss and Cost Pressures

Goodyear Rubber and Tire Co. announced it would be shuttering its Fayetteville, North Carolina plant that currently employs more than 1,700 workers. The decision to close the plant was made to strengthen Goodyear's ability to compete in today's marketplace and support the long-term health of the business, a company executive told a Fayetteville-based news outlet.

Goodyear lost $249 million during the first three months of 2026 after earning a $115 million profit during the first three months of 2025. CEO Mark Stewart said higher raw material costs due to the war would force Goodyear to take meaningful actions to strengthen our cost structure. The 1,700 employees in Fayetteville would appear to be on the receiving end of that action.

Even with an expected refund, inflation and tariffs would contribute to economic headwinds that could total $420 million over the full year, said Christina Zamarro, Goodyear's CFO. Goodyear expected to receive $46 million in refunds after the Supreme Court ruled Trump's sweeping emergency tariffs to be unlawful.

The company imports rubber from countries such as Thailand because rubber trees do not grow in the United States.

U.S. Trade Representative claimed that Thailand's trade surplus in sectors such as rubber was grounds for slapping higher tariffs on those imports.

U.S. U.S. Trade Representative. Every tire Goodyear makes in the United States is dependent on imported raw materials.

U.S. are raw materials or intermediate goods.

U.S. Does not produce rubber. Trade publications warned after last year's tariffs that consumers would face higher prices on both foreign-made and American-made tires while domestic producers faced tariffs on raw materials like rubber. The dual impact of reduced competition and higher input costs has contributed to the supply chain disruptions Goodyear is now experiencing.

The plant closure comes as the company navigates both tariff effects and disruptions from the war that have further strained crucial supply chains.