Bridgestone Bandag Tire Solutions Responds To Lower Tire and Retread Demand
NASHVILLE, Tenn. (Dec. 3, 2008) — Bridgestone Firestone North American Tire, LLC (BFNT) today announced that its Bridgestone Bandag Tire Solutions (BBTS) division will lay off approximately 60 members of its workforce in response to the current weakness in global business conditions that has resulted in lower truck tire and retread demand. As part of this action, BBTS will close its St. Louis, Mo.-based Oncor retread facility.
“These have been very difficult decisions to make, but our leadership team has been working diligently on the future direction of the organization,” said Saul Solomon, President, BBTS. “Although we’ve taken a number of steps to reduce expenses while enhancing quality, as we continue on our journey of building a unified, customer-focused organization, it was clear we needed to do more. Today’s announcements reflect our commitment to make good business decisions that will benefit our customers and our business for the long-term.”
These decisions are also a part of BBTS’ ongoing efforts to integrate and streamline its business in order to offer its customers one truck and retread tire business unit responsible for providing programs, services, information and products that reduce fleet operating costs and give dealers the opportunity to enhance their business.
“We are 18 months into our integration journey, and we are making great progress in creating one cohesive business unit that has, at its core, a focus on the customer,” Solomon said. “That said, based upon a comprehensive review of the truck and bus retread marketplace, it is clear that BBTS must take additional steps to streamline operations so we can continue to provide our customers with the best possible service, while positioning BBTS for additional growth and profitability in the future.”
Nine positions in Muscatine, Iowa, seven positions in Nashville, Tenn., and 23 field sales positions will be eliminated immediately through a consolidation of functions and job responsibilities in the sales, marketing, finance, legal and human resources departments. Muscatine will remain BBTS’ headquarters, and the finance and marketing teams have been asked to relocate there from Nashville, Tenn., to further BBTS’ integration. The decision to close the Oncor facility effective Jan. 31, 2009, which will result in 21 positions being eliminated, was made to align BBTS under one single retread brand, Bandag. The affected full-time teammates at both BBTS and Oncor will receive outplacement services and severance pay.
About Oncor:
Based in St. Louis, Mo., Oncor is a retreading service of Bridgestone Bandag Tire Solutions that provides a mold cure process for its customers.
About Bridgestone Bandag Tire Solutions:
Bridgestone Bandag Tire Solutions (BBTS), a division of Bridgestone Firestone North American Tire, LLC, manufactures, markets and sells medium and heavy duty truck tires for the original equipment and replacement markets in the United States and in Canada through Bridgestone Firestone Canada Inc. Bridgestone, Firestone and Dayton brand truck tires are available through more than 2,500 dealers and truck stops across the U.S. and Canada. Around the world, top truck fleets and original equipment manufacturers rely on Bridgestone and Firestone brand tires for long tread life and low cost per mile. In addition, through its Bandag brand, Bandag retreading dealers have access to industry-leading research and development, manufacturing, marketing and sales expertise. This combination of new and retread product offerings, combined with BBTS’ commercial retail operations doing business as TDS, GCR Tire Centers and White Tire, provides trucking customers with total tire solutions.
About Bridgestone Firestone North American Tire, LLC:
Nashville, Tenn.-based Bridgestone Firestone North American Tire, LLC (BFNT) is a subsidiary of Bridgestone Americas Holding, Inc., whose parent company, Bridgestone Corporation, is the world’s largest tire and rubber company. BFNT develops, manufactures and markets Bridgestone, Firestone and associate brand tires. The company is focused on wholesale and original equipment markets, supplying passenger, light truck, commercial vehicle, off road, motorcycle, agricultural and other tires to its customers in North America. In addition, through its Bridgestone Bandag Tire Solutions unit, retreading customers have access to industry-leading research and development, manufacturing, marketing and sales expertise, providing them with a total tire solution.