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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.

Toyo Tire Corporation said Mitsubishi Corporation has ceased to be a major shareholder after tendering its entire holding through a treasury share buyback, ending its status as the company’s largest shareholder.

The change took effect on 10^th August , 2026, following Toyo Tire’s acquisition of its own shares through off-auction trading (ToSTNeT-3). Mitsubishi tendered all its shares, excluding less than one unit, as part of the transaction.

As a result, Mitsubishi is no longer classified as a major shareholder or associated company of Toyo Tire, the company said.

Before the transaction, Mitsubishi held 30,822,206 shares, equivalent to 20.07 percent of total voting rights, and ranked as the largest shareholder. Following the change, its holding has effectively been reduced to zero.

The move follows Toyo Tire’s earlier announcement on August 7, 2026 regarding the termination of its capital and business alliance with Mitsubishi, alongside plans to repurchase its own shares.

Toyo Tire said the change would have no impact on its consolidated financial results.

Linglong Tire has become the first Chinese tyre manufacturer to join the Global Data Service Organization (GDSO) as a full member, marking a step in the industry’s efforts to standardise and exchange tyre-related data globally.

The company joins the non-profit body as its fourteenth member. GDSO was established in January 2022 by Bridgestone, Continental, Goodyear, Michelin and Pirelli to facilitate the digital exchange of tyre data and develop common standards across the sector.

Moh Wahi, Head Of Truck And Bus Tyre Development at Linglong Europe, said: "By joining the GDSO as a Full Member and providing reliable data, we want to be the first Chinese tyre manufacturer to make a positive contribution to the further development of the tire industry and set new standards for the efficient processing of tire data in the digital age."

Riccardo Giovannotti, Secretary General of GDSO, said: "With Linglong Tire as a Full Member, GDSO is gaining one of the leading Chinese tire companies which is committed to digitalization and sustainability in the industry. Together, we will further make progress in developing standards for data processing and future-oriented solutions."

Shandong Linglong Tire Co., Ltd., founded in 1975, operates seven research and development centres globally and employs almost 20,000 people. The company runs nearly 200,000 sales outlets and exports products to 175 countries.

It supplies tyres to more than 200 production bases for over 60 automakers and has manufacturing facilities across China, Thailand and Serbia, with plans to expand further overseas.

TyreSafe, UK’s charity dedicated to raising tyre safety awareness, has joined forces with Sussex Police’s Road Safety Team to introduce a pioneering digital reference tool for frontline officers. The initiative equips police with immediate, device-accessible tyre safety data during roadside stops.

Developed as a local pilot, the application enables consistent vehicle examinations and improves driver communication regarding tyre dangers. It offers specific checklists for diverse vehicle categories, including motorcycles, cars, heavy goods vehicles, light commercial vans and towed trailers. The system further incorporates guidance on part-worn tyres, common queries and educational talking points.

Following its Sussex trial, the programme holds potential for nationwide adoption across UK police forces. This deployment underscores Sussex Police’s dedication to roadway innovation and reinforces the essential contribution of proper tyre maintenance to overall public safety.

Stuart Lovatt, TyreSafe Chair, said, “This partnership with Sussex Police is a landmark moment for tyre safety enforcement and education. By putting reliable, accessible tyre safety guidance directly into the hands of frontline officers, we can ensure safer vehicles on our roads and help prevent avoidable collisions and breakdowns. Sussex is leading the way, and we hope this model will soon be adopted nationally.”

Superintendent Jo Grantham, Head of Roads Policing, Sussex Police, said, “Our officers are committed to keeping road users safe, and having instant access to this tyre safety resource makes a real difference on the ground. It supports enforcement while also giving us the tools to educate drivers more effectively. We’re proud to be working with TyreSafe on this project and to be the first police force in the country to pilot it.”

The UK Towing Safety Alliance (UKTSA) has published a comprehensive four-year analysis of incident data from National Highways’ Strategic Road Network, covering 2022 to 2025. The findings reveal a 23 percent rise in total towing-related incidents, driven primarily by a maintenance crisis affecting utility and commercial trailers. While traffic collisions involving towed vehicles decreased by 17 percent, mechanical breakdowns now constitute 77 percent of all towing-related incidents, highlighting vehicle and trailer condition as the sector's foremost challenge.

The data coincides with SMMT Motorparc 2025 figures showing Britain's vehicle fleet at its oldest recorded level, with average car age reaching 9.7 years. The summer harvest season has also arrived, bringing agricultural trailers back to roads after months of disuse. NFU Mutual research indicates collisions involving agricultural vehicles are 56 percent more likely between May and September, reinforcing the need for pre-journey roadworthiness checks.

Utility and agricultural trailers now account for nearly half of all towing-related callouts, surpassing 3,000 incidents in 2025. Regionally, the North West has overtaken the South East as the most incident-prone area, with trailer failures surging 60 percent since 2022, while the North East recorded a 55 percent increase. A growing divide exists between leisure and commercial towing sectors.

Leisure sector improvements, including fewer horsebox incidents and regional caravan reductions, suggest awareness campaigns are yielding positive results. However, utility trailer failures continue climbing, indicating maintenance standards across commercial and domestic sectors require greater attention. Regular servicing, correct loading and proper coupling remain essential to prevent avoidable incidents.

For working trailers, summer represents peak operational period, with agricultural and utility trailers seeing intensive use while rural roads become busier with tourists and cyclists. The Alliance emphasises that trailers stored for extended periods require thorough inspections before returning to service.

The UKTSA urges all towers to perform three essential checks covering tyres, load and connection before every journey. Tyres must be inspected for pressure, tread and deterioration; loads correctly distributed and couplings and electrical connections verified. The Alliance will place ‘The Working Trailer’ at the centre of safety campaigns, collaborating with industry partners to boost maintenance awareness and reduce preventable breakdowns across the Strategic Road Network.

A spokesperson for the UK Towing Safety Alliance said, “It’s encouraging to see fewer collisions involving towing vehicles, which suggests that drivers are becoming more aware of safe towing practices. However, that progress is being undermined by a growing number of preventable mechanical failures. The challenge is no longer simply about how people tow – it’s increasingly about what they’re towing and the condition it’s in. As both tow vehicles and trailers get older, regular maintenance has never been more important.”

Stuart Lovatt, Chair of TyreSafe, said, “Harvest season places extra demands on both vehicles and trailers, particularly those that may only be used for a few months each year. One of the most common issues we see is tyres that appear to have plenty of tread but have deteriorated through age, weathering or prolonged storage. Whether you’re towing a livestock trailer, plant trailer, horsebox or caravan, tyres should always be inspected for correct pressure, damage, cracking and signs of ageing before every journey. A few minutes spent carrying out these checks can prevent breakdowns and significantly improve safety for everyone using our roads.”

Sarah Smithurst MBE, COO, National Trailer & Towing Association (NTTA), said, “Across the NTTA network, we’re seeing a noticeable increase in enquiries from people looking to refurbish older trailers or source second-hand trailers, including imported models, as a more affordable alternative to buying new. While extending the life of a trailer is often entirely appropriate, it’s essential that owners understand that trailers are not maintenance-free. Many have been in service for years, sometimes decades, and components naturally deteriorate over time, even if the trailer has seen relatively little use. Every trailer should be thoroughly inspected before it returns to the road, with particular attention paid to tyres, brakes, bearings, couplings and lighting. Investing in regular servicing and maintenance is far less costly than experiencing a breakdown – or worse, being involved in an incident. The NTTA continues to help and advice new and old trailer users about safety and many are asking for help when towing, especially the reversing aspect of a trailer, now the B&E test was withdrawn. We are also seeing more trailers being repatriated from North America and Europe rather than purchasing new in the UK.”