Goodyear Tire & Rubber Co is to close 92 stores and cut 600 full-and part-time jobs in the United States as the economic downturn puts more pressure on the company.
Goodyear, the largest tire maker in the United States, currently owns 742 stores in the United States.
The company said the closings would enable it to eliminate $US9 million in annual losses.
US auto sales fell to a 16-year low in July as Americans abandoned trucks and SUVs as energy costs, a weak housing market and tight credit weighed on the economy.
Earlier this month, Bridgestone Corp said it expected North American demand for new passenger car tires to fall 5% this year because of the decline in new car sales.