Bridgestone/Firestone Inc. Reorganizes Operations
NASHVILLE, Tenn.--Dec. 3, 2001--Establishes Holding Company Bridgestone/Firestone Americas Holding,
Bridgestone/Firestone North American Tire Headed by John Lampe
In a move that will position the company to take advantage of better financing rates and to focus more effectively on its core businesses, Bridgestone/Firestone Inc. (BFS) instituted a series of changes to its corporate structure effective Dec. 1, 2001.
The reorganized company will continue its operations in the Americas under John Lampe, who will serve as CEO, chairman and President of Bridgestone/Firestone Americas Holding Inc. (BFAH).
BFAH is a holding company that is the parent of several new companies that are responsible for the operations of the former BFS. The holding company is one element of the realignment of divisional companies previously doing business under the BFS umbrella.
"Our 'Making It Right' commitment requires that we look at every aspect of our business to find effective ways of rebuilding our company. The reorganization of BFS is an important step in that rebuilding process and will help ensure that the Bridgestone/Firestone family of companies is financially strong and viable for the long-term," said Lampe.
The reorganized entity consists of the holding company, BFAH, and several operating subsidiaries including:
| -- | Bridgestone/Firestone North American Tire, LLC (BFNT). The successor to BFS, BFNT will conduct the North American tire manufacturing and wholesale and original equipment sales operations, including the consumer, commercial truck and bus, agricultural, and off-the-road businesses. Product development and research related to these businesses will also be conducted by BFNT. Lampe will serve as CEO and chairman and Isao Togashi will serve as vice chairman and president of the entity, which has headquarters in Nashville. |
| -- | BFS Retail & Commercial Operations, LLC (BFRC). The company will consist of the Bridgestone/Firestone family of company-owned consumer and commercial store chains in the United States and Canada, including Firestone Tire & Service Centers, TiresPlus, and GCR as well as the company's credit card operations. Larry Magee is the CEO, chairman and president of BFRC, which has headquarters in Bloomingdale, Ill. |
| -- | BFS Diversified Products, LLC (BFDP). This company will include the Bridgestone/Firestone non-tire operations in the Americas including the building products, industrial products, synthetic and natural rubber, and textile businesses. BFDP has headquarters in Carmel, Ind. and its CEO, Chairman and President is Robert McNally. |
| -- | Bridgestone Metalpha USA Inc. (BMU). Originally a sister company to BFS, BMU manufactures the steel cord used in tires. With headquarters in Clarksville, Tenn., BMU's President is Tora Toraiwa. |
The Latin American subsidiaries of the former BFS will be owned directly by BFAH. For operations purposes, these subsidiaries will report to the holding company through a division of BFAH that is known as Bridgestone/Firestone Latin America (BFLA). BFLA is headed by BFAH Executive Vice President Mark Emkes.
"We must put our company in the best position to obtain cost-effective financing for the long-term and to permit management at the operating level to focus on their respective core businesses. This reorganization will go a long way toward accomplishing these two essential goals and marks a fresh beginning for our operations in the Americas," said Lampe.
The reorganization caps months of work by teams of Bridgestone/Firestone employees, tax and accounting professionals and financial institutions to develop and implement a plan to accomplish the twin goals of securing more cost-effective long term financing and designing a corporate structure that facilitates management focus on core business operations.
Nashville-based Bridgestone/Firestone Americas Holding Inc. is a subsidiary of Bridgestone Corp., the world's largest tire and rubber company. Bridgestone/Firestone, through its subsidiaries, develops, manufactures and markets Bridgestone, Firestone, Dayton, and associate and private brand tires. The companies also produce Firestone air springs, roofing materials, synthetic rubber, and industrial fibers and textiles.