Goodyear and the Threat of Government Tire Grading Harvard Case Solution & Analysis

In the spring of 1977, General Manager Goodyear Charles J. Pilliod Jr., looking at the internal report on state and legal developments relating to the tire industry. Two items caught his attention. First, he noted that the industry lawsuit to block the proposed system of government, to assess the tires on tread wear, traction, and temperature resistance were rejected by a U.S. appeals court. Although the court found fault with the government's proposals, the decision could mean that the tire grading system was close to becoming a reality. Second, Joan Claybrook, a former Nader consumer interest group lobbyists, has just become head of the National Highway Traffic Safety Administration, the agency in the government, was responsible for the production of the rating system. Pilliod thought regulatory developments may affect the ability of Goodyear, to maintain its global leadership in the production of tires. "Hide
by Felix Oberholzer-Gee, Dennis Yao, Elizabeth A. Raabe Source: Harvard Business School 13 pages. Publication Date: November 28, 2006. Prod. #: 707494-PDF-ENG

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