Goodyear Tire & Rubber Co. could get as much as $40 million from the state over 10 years if it keeps producing in Fayetteville -- even if it lays off workers.

Before adjourning, the General Assembly approved a new incentive program written to sway one of Cumberland County's largest private employers as it considers factory closings and expansions.

Goodyear would have to invest at least $200 million in its factory to get the assistance. But it would not have to create any jobs or keep all 2,750 existing positions.

"Goodyear has been a wonderful corporate citizen in our part of the state," said Sen. Tony Rand, a Fayetteville Democrat and one of the legislature's most powerful members. "It makes a great deal of sense to keep one of our most important industrial citizens."

The incentive comes as Goodyear trims domestic production of low-end tires in favor of more profitable models.

Last year, the company said that it would stop making about 10 brands of tires -- some made in Fayetteville -- sold under the names of wholesale customers. Since that time, the company has also announced plans to end tire production at a factory in Canada and close a Texas plant.

Goodyear's decisions angered unionized workers, who went on strike last year. Its actions have also sparked fears in several U.S. communities, where leaders worry that they could lose a major employer.

Officials in Alabama and Tennessee have cobbled together incentives packages to entice Goodyear to upgrade plants instead of shutting them down.

"Everybody spends a lot of money to bring these kinds of plants in," said Jim Cooper, executive director of the Obion County Joint Economic Development Council in Tennessee. Goodyear employs about 2,500 at a plant there in Union City.

"Not a whole lot of emphasis is put on keeping them," he said. "When one gets in front of the bull's-eye, you had better do what you can to keep from losing it."

Goodyear has not yet made any investment decisions, said Richard Evans, a spokesman for Goodyear in Fayetteville. And it won't get N.C. assistance unless it chooses to invest in the state.

N.C. leaders see it as a competition.

They want a lucrative package, in case Goodyear only upgrades one facility. Cumberland and Fayetteville officials also have discussed enticements but have not disclosed them, said Phyllis Owens, executive vice president of the Cumberland County Business Council.

Cooper estimated that the concessions approved in Tennessee would be worth about $20 million. Alabama officials could not be reached.

The legislation approved by the N.C. General Assembly sets aside $4 million a year and does not specifically name Goodyear. To qualify for a grant, a company must apply and agree to invest $200 million by 2012. It must already employ at least 2,000 full-time employees and maintain at least that number for as long as a decade.

Rand and Owens said that the legislation was introduced with Goodyear in mind. During the process, language was included to split the $40 million pool of funds among as many as five companies. But with the specific investment, employment and other requirements, few, if any, other companies would likely qualify.

"We're disappointed," said Dan MacDonald, a spokesman with Bridgestone/Firestone, a rival tire manufacturer that has 2,179 employees and contractors at a plant in Wilson. "We stand ready to work with the state to correct this so we can compete in a challenging and competitive global environment."

The legislation marks a shift in incentives policies in the state and is likely to draw the ire of critics. Typically, North Carolina has awarded grants and other aid to businesses that agree to invest in new facilities and create jobs.

The new legislation aims to retain jobs, not bring new ones.

"We don't think that's a good idea," said Dean Webster, executive director of the N.C. Institute for Constitutional Law, which has fought previous incentives agreements in court. "It's either: You open the floodgates, or there are certain favored entities that get it. Either way, it's problematic."

For Rand, action was a given.

Goodyear, and its predecessor companies, have had operations in the area for more than three decades. The average annual wage at the plant exceeds $50,000, and jobs come with benefits worth thousands more, he said. And a $200 million investment would be equivalent to a new facility.

"We see what's been done for Dell and Google," he said. "This is a massive economic engine."

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