Goodyear Tire & Rubber Co. named Richard Kramer as the new Chief Executive Officer, in place of Robert Keegan, who will officially retire from the position but remain the tire maker's chairman.

"This decision is the logical and anticipated culmination of a well-thought-out succession plan", James C. Boland, Goodyear's lead director, revealed in the statement.

Mr. Kramer, 46 years old, was named Goodyear's Chief Operating Officer in June. He is reported to take over the CEO position effective April 13. Mr. Keegan, 62, spent the past seven years as CEO and Chairman.

Mr. Keegan is applauded for intensifying the company's commitment to developing and introducing new products such as the hot-selling Assurance tire. He also cut higher-costing tire-making jobs, shut underperforming plants and sold off noncore business units, including exiting farm-tire production in the U. S.

Goodyear is initiating such a change after a $375 million net loss last year as plunging auto sales and the global economic meltdown resulted in 16 percent fall in sales. The company posted losses in three of the past four years.

Mr. Kramer spent the past three years leading the company's North American division. Prior to that, he spent three years as Executive Vice President and Chief Financial Officer. Mr. Kramer joined Goodyear as vice president of corporate finance in 2000.