Rubber exporters attack Goodyear plan

Rubber exporters attack Goodyear plan

BANGKOK (Reuters): Thailand, Indonesia and Malaysia, the
world's top three rubber producers, have lodged a protest against
efforts by Goodyear Tire and Rubber Co to charge suppliers for
damage to rubber products.

"We just sent a letter to Goodyear informing them that it is
unacceptable to demand suppliers take responsibility for any
damage caused by defective products," Choosit Opaswonse,
president of Thai Rubber Exporters' Association, told Reuters.

Goodyear, one of the world's leading tyre makers, has sent a
letter to most suppliers and exporters in the three rubber
producing countries, informing them that they must assume
responsibility for any damage.

"What we are really concerned about is that what would happen
if in the future Goodyear faced the same problem as Bridgestone's
on a massive tyre recall. According to the new condition,
Goodyear can put the blame on suppliers and it is us who have to
pay for any costs incurred," said Choosit.

Ohio-based Goodyear said in the letter that it could no longer
absorb financial losses caused by suppliers' errors.

"Goodyear can no longer absorb financial losses caused by
suppliers' errors...," J.C. Whiteley, vice president of the
firm's department of global product & process quality said in the
letter obtained by Reuters.

"Accordingly, we will be charging back, via deductions from
invoices, Goodyear's cost for rework, material losses, extra
labor, downtime, and other costs incurred due to supplier
failures to meet our quality, delivery and other requirements."

Exporters in Thailand, the world's largest rubber producer and
exporter, said they needed more specifics.

"The letter is so vague and broad, especially the phrase
'other costs incurred due to supplier failures' -- what does that
mean?... It could be anything, the scope is so limitless," said
Choosit.