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Investigation reveals coordinated theft by contractors and employees through bulk pilferage and excess loading schemes

Goodyear India Limited disclosed that a comprehensive investigation by Ernst & Young uncovered a sophisticated theft operation at its Ballabgarh manufacturing plant, resulting in the loss of 4,571 tyres valued at approximately INR 39.11 million.

The tyre manufacturer’s board reviewed the investigative findings during a meeting that concluded last week, revealing what the company described as “potential theft of tyres in bulk by contractual workers involved in security, warehousing and loading operations, acting in collusion.”

Dual Theft Operations Exposed

The Ernst & Young investigation, spanning October 2023 to November 2024, identified two primary theft methods that enabled the systematic pilferage of farm tyres from the Faridabad-based facility.

Bulk Theft Scheme: The more significant operation involved truckloads of tyres being removed from the plant through coordination between third-party loading supervisors, warehouse workers, security guards, and external accomplices. Electronic communications reviewed by investigators revealed references to 4,057 tyres across 20 dates between July and December 2024, with detailed SKU counts discussed among the conspirators.

Security records were deliberately manipulated to conceal the theft, with one security contractor admitting to accepting kickbacks from a loading supervisor to avoid recording truck details carrying stolen merchandise.

Excess Loading Operation: A secondary scheme involved loading additional tyres beyond invoiced quantities onto legitimate shipments, with the excess stolen during transit. The investigation revealed a significant increase in overweight dispatches during the July-November 2024 period, with 50 per cent of overweight trucks dispatched during this timeframe, compared to historical patterns.

Quality assurance protocols were compromised, with one employee admitting to receiving instructions from a third-party warehouse vendor to disregard overweight trucks and dispatch them without conducting mandatory quality studies. The employee estimated that 5-6 excess tyres were loaded per truck in select shipments to Goodyear warehouses.

Quality Control Manipulation

The investigation also uncovered systematic inflation of tyre rejection quantities during pre-dispatch inspections. A quality assurance employee acknowledged receiving kickbacks to artificially inflate rejected tyre counts in daily reports, despite no physical rejections having occurred, allegedly to help manage inventory shortfalls maintained by the third-party warehouse vendor.

Data analysis revealed an increase in rejection rates in 2024 compared to 2023, with the manipulation involving collusion between employees and third-party quality inspectors.

Operational Control Gaps

Beyond the theft schemes, Ernst & Young identified significant weaknesses in Goodyear’s inventory management and production processes. The manual production handover system lacked proper verification, with multiple employees admitting that the defined processes weren’t followed.

Production records maintained manually revealed discrepancies, with multiple spreadsheets containing different production numbers for the same periods. The investigation found that production during shutdown periods wasn’t recorded in the Production Management Information System, creating variances that couldn’t be validated due to unreliable manual records.

Financial Impact and Response

The financial impact of the inventory shortage identified in November 2024 was already recognised in Goodyear India’s financial statements for the quarter ended 31 December 2024. “The management has taken cognisance of the findings and initiated appropriate legal and disciplinary actions against those involved,” the company stated in its regulatory filing. “Proactive measures, including a site security assessment and tightened controls, have been implemented.”

Investigation Methodology

Ernst & Young’s fact-finding review employed comprehensive investigative techniques, including data analytics, transaction testing, background checks on suspected third parties, forensic imaging of electronic devices, and interviews with employees and contractual workers.

The investigation covered electronically stored information from the laptops and server backups of suspected individuals, utilising keyword-based searches to identify suspicious communications that proved crucial in establishing the theft patterns.

Regulatory Compliance

The disclosure fulfils Goodyear India’s obligations under Regulation 30 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations, 2015. The company initially informed stock exchanges of the inventory variance on 12 February 2025.

“The Company remains committed to upholding the highest standards of corporate governance and safeguarding stakeholder interests,” Goodyear India stated in its filing.

Bridgestone will continue as a tyre supplier to the FIM Endurance World Championship (EWC) in 2026, extending its partnership with the series which began in 2017. The company will increase its involvement by equipping seven teams with its premium BATTLAX motorcycle tyres, a rise from the five teams supported the previous year. The seven teams are AutoRace Ube Racing Team, BMW Motorrad World Endurance Team, F.C.C. TSR Honda France, Kawasaki Webike Trickstar, KM99 Yamaha, Yamalube YART Yamaha EWC Official Team and Yoshimura SERT Motul.

This expanded role follows a highly successful 2025 season where a Bridgestone-equipped team, Yamalube YART Yamaha, claimed the EWC title. This victory marked the sixth championship win for a team using Bridgestone tyres and the fifth consecutive year of such dominance, with five of the top six overall positions occupied by Bridgestone-supported teams.

The BATTLAX racing tyres are the result of advanced engineering, utilising sophisticated materials and construction methods to provide superior grip, consistent performance and lasting durability. These qualities are essential for the demanding nature of endurance racing, which features events lasting up to a full day. Engineered to perform reliably in diverse weather and track conditions, the tyres give riders the confidence to maintain a competitive pace throughout each stint.

Bridgestone views the racetrack as a crucial development environment, using the extreme conditions of the EWC to rigorously test and refine its technology. With races ranging from 8 to 24 hours, the series places continuous, intense stress on tyres, offering a perfect setting to advance compound chemistry and construction techniques. This knowledge is then applied to consumer products under the company’s From Circuit to Street philosophy. The latest proof of this process is found in new additions to the BATTLAX family, including the track-only RACING BATTLAX V03 slick tyre and the road-legal BATTLAX RACING STREET RS12, both of which feature technology honed in the crucible of endurance competition.

Nico Thuy, Director Motorcycle, Bridgestone EMEA, said, “The FIM Endurance World Championship represents the ultimate proving ground for tyre performance, durability and innovation. The 2025 season once again demonstrated the consistency and capability of Bridgestone tyres under the toughest racing conditions. Following this success, we are proud to offer our expertise and top-performing tyres to seven teams for 2026.”

The 2026 EWC season schedule is as follows:

• 18 April: 24 Heures Motos, Le Mans, France
• 6 June: 8 Hours of Spa Motos, Circuit de Spa-Francorchamps, Belgium
• 5 July: Cuca-Cola Suzuka 8 Hours, Suzuka race track, Japan
• 19 September: the Bol d'Or, Circuit Paul Ricard, France

The Yokohama Rubber Co., Ltd. has unveiled its comprehensive motorsports activity plan for the 2026 season. The company views its participation in global motorsports as essential for advancing tyre technology and reinforcing the ADVAN and GEOLANDAR brands. Its strategy encompasses a diverse range of events, from top-tier championships to grassroots competitions worldwide.

Key championships and series

• SUPER FORMULA: Yokohama Rubber has renewed its exclusive agreement as Official Tyre Partner and control tyre supplier for Japan's premier racing series, a partnership dating back to 2016. The new contract extends through the 2030 season. For 2026, the company will supply ADVAN racing tyres featuring a high renewable and recycled raw material ratio of approximately 46%. The series will also introduce the SUPER POLE QUALIFYING Supported by YOKOHAMA TYRE, a three-stage knockout format.
• SUPER GT: Yokohama will supply ADVAN racing tyres to one car in the GT500 class and 17 cars in the GT300 class, aiming for victories and a championship title in the latter.
• Nürburgring 24-Hour Race: Yokohama will supply ADVAN racing tyres to three teams: Haupt Racing Team, KONDO RACING with Rinaldi, and BMW M Motorsport. This marks the first collaboration with BMW M Motorsport in nearly 40 years, with ADVAN tyres fitted to two BMW cars entered by Schubert Motorsport and a special fan-focused BMW entry. Tyres will also be supplied for the Nürburgring Langstrecken-Serie (NLS).
• Porsche Sprint & Endurance Challenges: For the sixth consecutive year, ADVAN racing tyres will serve as the control tyre for the Porsche Sprint Challenge North America and Porsche Sprint Challenge USA West. It will also be the control tyre for the Porsche Endurance Challenge North America for the third straight year.
• Ford Mustang Cup: Yokohama will again supply ADVAN racing tyres as the control tyre for this one-make series, which features the Ford Mustang Dark Horse R.
• American Off-Road Racing Championship (AORC): Yokohama has become a supporting sponsor of this newly launched premier desert racing series. The company will supply GEOLANDAR tyres to top teams competing in the championship, which includes renowned races like Best in the Desert and The Mint 400.

Other major events and disciplines

• Hill Climb: At the Pikes Peak International Hill Climb, Yokohama will supply ADVAN racing tyres to top drivers and continue sponsoring and providing the control tyre for the Pikes Peak GT4 Trophy by Yokohama.
• Off-Road Races: Yokohama will seek a second consecutive overall win at the Asia Cross Country Rally (AXCR) using GEOLANDAR M/T G003 tyres. In North America, the company will support the King of the Hammers (as title sponsor of the Every Man Challenge), the Championship Off-Road series (with GEOLANDAR X-AT and A/T4 tyres), and the TrophyLite Series (supplying GEOLANDAR M/T G003 as the official specification tyre for the eighth year). They will also supply tyres for the XCR Sprint Cup Series in Japan.
• Rally: In the Japanese Rally Championship (JRCA), ADVAN rally tyres will be supplied to top JN-1 class teams, including the NUTAHARA Rally Team (with an ADVAN-coloured car) and SUBARU Team ARAI. Yokohama will also support the TOYOTA GAZOO Racing Rally Challenge for a second year.
• Drift: For FORMULA DRIFT JAPAN (FDJ), Yokohama will supply ADVAN NEOVA AD09 tyres to teams in the top FDJ class and provide control tyres (ADVAN NEOVA AD09 for FDJ2, ADVAN APEX V601 for FDJ3). The company will also supply ADVAN tyres to a team competing in the D1 GRAND PRIX.
• Speed Competitions: In Japan, Yokohama will supply ADVAN A052 and A050 tyres for the All Japan Gymkhana Championship and a range of ADVAN tyres for various surfaces in the All Japan Dirt Trial Championship.

Participatory & Grassroots: Yokohama will support grassroots events globally, including supplying ADVAN dB V553 tyres as the control tyre for the new CATERHAM CUP JAPAN. The company also announced its Yokohama Motorsports Scholarship 2026 programme to support participants in Japanese rally, gymkhana and dirt trial competitions.

Hankook Tire is set to showcase its advanced commercial tyre portfolio at the inaugural Road Transport Expo (RTX) Ireland, scheduled for 15 and 16 April 2026 at the Eikon Exhibition Centre in Lisburn. Hankook will display the pioneering e-SMART City AU56 EV bus tyre, the new Smart Work AM11+ for regional distribution, the versatile SmartFlex range for long-haul applications and value-focused Laufenn commercial tyres. Organised by the team behind the successful RTX Stoneleigh and RTX Scotland events, RTX Ireland 2026 brings a dedicated truck focus to Northern Ireland. With over 50 exhibitors and an expected attendance of more than 7,000 visitors, the event serves as a crucial hub for the Irish road transport sector to network and discover industry-shaping innovations. Attendees can find Hankook alongside its exclusive distributor, TyreCall and Tractamotors, at Stand C15.

Among the featured innovations is Hankook’s pioneering e-SMART City AU56, the brand’s first electric bus tyre introduced in 2024. Engineered for the unique demands of electric urban transport, this tyre offers low rolling resistance for extended range, reduced noise for enhanced passenger comfort and robust durability to manage the high torque and heavier loads of electric vehicles. Also on show will be the recently launched Smart Work AM11+, a tyre specifically developed for the rigours of regional and local distribution. Its design provides strong resilience against the wear and tear of stop-start operations, making it ideal for demanding sectors like waste management, with reinforced sidewalls for extra protection.

For fleets covering regional and long-haul routes, Hankook will present its SmartFlex range. The SmartFlex AL51 for steer axles and DL51 for drive axles are engineered for consistent performance throughout their lifespan. Reflecting Hankook’s commitment to sustainability and cost-efficiency, these tyres are both regroovable and retreadable. Complementing the Hankook portfolio, visitors can also explore the Laufenn brand, including the Laufenn365 initiative. The Laufenn commercial range, featuring the LF95+ trailer tyre, LF22 all-position tyre and LZ22 drive tyre, leverages Hankook’s advanced technology to deliver strong value, full retreadability and a reduced environmental footprint, catering to budget-conscious operators. This participation underscores Hankook’s growing leadership in the UK truck tyre replacement market, driven by continuous innovation and tailored solutions for an evolving industry.

Jon Cottrell, Truck and Bus Sales Manager, Hankook Tyre UK, said, “We are looking forward to the first Road Transport Expo in Northern Ireland – it’s a fantastic opportunity to build meaningful connections and stay informed on the latest developments shaping the industry. 2026 marks the inaugural RTX Ireland and our first time exhibiting in Northern Ireland, which makes it particularly exciting. We’re proud to be attending alongside our exclusive distributors, TyreCall and sister company, Tractamotors, who we have had a strong partnership with for the last 40 years. We look forward to welcoming both existing and prospective customers to our stand while gaining valuable insight into the Irish truck tyre market.”

The Tire Industry Project (TIP) has released the updated Product Category Rules (PCR) for tyres in collaboration with UL Environment. This revision establishes a more robust framework for measuring environmental performance and promotes consistent transparency throughout the tyre sector.

A Product Category Rule serves as a standardised guide for manufacturers to conduct lifecycle assessments and create Environmental Product Declarations that enable meaningful comparisons between similar products. Valid for the next five years, the revised PCR integrates current scientific findings, including enhanced methods for tracking greenhouse gas emissions. It reflects modern production realities such as the adoption of renewable energy in manufacturing plants and incorporates evolving vehicle technologies like improved fuel economy and alternative fuel sources. The update also mandates uniform reporting when new materials are introduced, simplifying the monitoring of sustainability advancements.

Independently adopted by the 10 member companies of the Tire Industry Project, which collectively account for 60 percent of global tyre production capacity, this fourth edition encourages wider voluntary implementation across the industry. Developed through collaboration among major manufacturers, the PCR standardises how environmental footprints are calculated from raw material extraction through disposal, ensuring comparability of Environmental Product Declarations. This comparability supports environmentally conscious purchasing decisions and fosters ongoing improvements in sustainability across the value chain.

Key enhancements include refined carbon footprint calculations addressing biogenic carbon, expanded applicability to all tyre categories including off-road and specialty tyres and greater regional accuracy by incorporating localised data on end-of-life tyre management, vehicle efficiency, energy mixes and payload considerations. The methodology now provides a clear hierarchy for assessing impacts in multi-product manufacturing environments, aligns impact indicators with the European Commission’s Environmental Footprint 3.1 framework and updates raw material datasets and emission factors for improved data quality.

UL Solutions, an independent safety science organization, collaborated closely on developing and publishing this updated PCR.

Dr Larisa Kryachkova, Executive Director, TIP, said, “The updated PCR reflects years of collaboration and investment to advance sustainability across the tyre value chain. Our goal is to strengthen environmental reporting. With a common methodology, we support better industry-wide decision-making, turning ambition into positive environmental action.”

Ranee Valles, Director and General Manager – Product Sustainability, UL Solutions, said, “Transparent, standardised reporting enables manufacturers, regulators, fleet operators and consumers to make informed choices about the products they use or supply. Our collaboration with TIP reflects a shared commitment to credible, science-driven solutions, and we’re grateful for TIP’s leadership in advancing scientific rigour and industry alignment on environmental reporting.”