DETROIT — Goodyear Tire & Rubber CEO Mark Stewart sits in the vehicle bay of a tire shop where the company is launching a new retail experience for customers.
There's a freshly painted black facade on the revamped Detroit store, with the words "Motor City" added in white flanking Goodyear's winged foot logo. It's dressed up for a private event tied to a nearby annual car festival called the Woodward Dream Cruise.
But despite the stylish touches, it's still a tire shop. The smell of rubber and oil remains in the air, and the sound of workers changing tires combines with music from a DJ inside the shop's waiting room.
The scene symbolizes Stewart's ongoing "Goodyear Forward" turnaround plan. He's trying to make tires — a historically dirty business — more attractive to investors and friendlier for consumers.
"We have made so much progress, and when you think about it from the standpoint of the Goodyear Forward program, it was really to get our feet back on the ground towards being the iconic company that we always were," Stewart, wearing an unbuttoned navy blue Goodyear technician shirt, told CNBC during an interview at the shop.
But while Goodyear is well known for burning rubber, it's also burning cash as it restructures, tries to refinance, and pays down years of debt.
The company's capital expenditures were roughly $2 billion combined in 2024 and 2025, with expectations of $725 million this year. Its debt remained above $7 billion at the end of the second quarter.
Goodyear's net loss was $453 million through the first half of the year, while its operating income was $131 million, or a 1.6% margin.
Under the turnaround plan, Stewart wanted Goodyear to reach a 10% operating margin by the end of last year. Instead, that came in at 8.5% in the fourth quarter, and it's still an outstanding goal for the company to hit that mark.
"We're working on getting to that double-digit margin, and we're working on meaningfully generating cash flow," Stewart said. "It's been a long time since Goodyear's done that. That we absolutely must do."
The automotive veteran was named CEO of Goodyear after leaving Chrysler parent Stellantis in January 2024. Since then, shares of the company have fallen more than 50% despite Goodyear achieving many of the milestones he's set out to accomplish with the plan.
Stewart doesn't make excuses for missing the targets, even though Goodyear's business, like many, has been impacted by tariffs, inflated raw material costs, and the expansion of cheaper Chinese products.
"We still have a lot of geopolitical headwinds that we're working through … a lot of headwinds with raw material indexes and a bit of the hangover from the tariff environment," he said, adding that overseas manufacturers continue to have cost advantages compared to Goodyear.
Goodyear's raw material costs are expected to be roughly flat year over year, but a $200 million headwind in the second half, largely due to higher commodity costs associated with the conflict in the Middle East, according to the company and Wall Street analysts.
"Goodyear has faced many big challenges over the past few years, ranging from slower consumer (and commercial) demand, to rising raw material costs, to higher capital expenditures (capex), to low-priced Asian imports (into the U.S.), and, more recently, to trade and tariff legislation. It hasn't been easy for Goodyear," Argus analyst Bill Selesky said in an Aug. 17 investor note.
