Goodyear Predcits Slowdown in Asia Sales Growth

U.S. tire maker Goodyear Tire and Rubber Co. is predicting a slowdown in sales growth in the Asia Pacific region. This should match the reduction in sales in China, but are hoping to gain a larger market share.

Goodyear is predicting a 6% sales increase in 2006, as opposed to the 8.5% increase in 2005. The forecast was based on a slowdown in China growth. Car sales in China climbed by a fifth last year, as opposed to 15% in 2004 and near-doubling growth in 2003. The hope is for growth to stabilize between 15% and 20% in the coming years.

The company said last year that it would invest $120 million to increase production at its Dalian plant to 5.3 million tires annually by 2007.