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Bridgestone/Firestone Inc. Announces Changes and Improvements

19 December 2000

Bridgestone/Firestone Inc. Announces Changes and Improvements
    Safety Recall Prompts Internal Review Quality Review Team Examines All
         Aspects of BFS Company Moves to Restore Consumer Confidence

    NASHVILLE, Tenn., Dec. 19 Bridgestone/Firestone Inc.
(BFS), as part of its on-going effort to restore consumer confidence in the
Firestone brand, today announced new systems and improvements in the areas of
quality assurance, tire enhancements, and production operations.
    The changes are the result of a review conducted by a special
Comprehensive Quality Review Team made up of technical, engineering and safety
professionals. The review team consisted of three committees to examine
quality assurance, development and production and involved:

    * Nashville headquarters - quality assurance committee
    * Akron Technical Center - development committee
    * Five North American passenger and light truck plants (Wilson, LaVergne,
    * Decatur, Jolliette, and Aiken) - production committee

    "The safety recall showed us a clear need to redouble our efforts to
become the recognized industry leader in tire safety.  The review team's
efforts gave us the road map to changes and improvements to achieve that
goal," said John T. Lampe, BFS President, Chairman and CEO.
    In the U.S. tire industry a tire's performance in the field has been
measured and evaluated by long-established and proven procedures including
monitoring of warranty adjustments, testing and analysis of returned tires,
and developmental and ongoing production testing.  Historically, the
adjustment program has been a highly reliable source of information that
provides rapid feedback about the performance of tires.  As a result, the
delayed and smaller volume claims information concerning property damage,
personal injury, and litigation were not viewed as a reliable indicator of
tire performance.
    Also, in the past, information given to tire manufacturers about tires
that were provided as original equipment on new cars shipped to overseas
markets has been limited.  Factors such as ambient temperatures, road surface
conditions, and usage conditions vary greatly from country to country.
Information about the export destination is vitally important in determining
the choice of tires appropriate for that market's driving conditions.
    Three major changes are being implemented as a result of the quality
assurance committee's review.   Beginning in January, a quality subcommittee
composed of the top managers from the sales technical service and the quality
assurance departments will meet regularly and report directly to Lampe.  This
group will gather, review and analyze market quality data.
    BFS will establish an enhanced safety "early warning" system derived from
integrated control of internal adjustment and claims data and reviews and
periodic analysis of public data from the National Highway Traffic Safety
Administration.  The company will set up a system to facilitate quick
detection of anomalies in each type of data and establish a quick response
structure.
    The company has begun to track original equipment fitments for exported
vehicles and is creating a global quality information network that it will use
to exchange quality information among its global affiliates and develop a
system for early problem detection.

    Development group focuses on tire enhancements and global standards
    The development group focused on two areas.  First it sought to establish
and implement practices that would enhance the actual performance of products.
Second, the group moved to establish common global standards for processes and
systems so that enhancements and improvements can be implemented and
maintained across the company and throughout the Bridgestone Group worldwide.
    In order to enhance quality and safety, changes are being made in the
materials and construction used in BFS' tires.  These measures will impact a
number of aspects of tire construction and design.  The process to implement
these enhancements begins immediately with priority being given to sport
utility vehicle and light-truck tires, which are subject to heavy loads and
are increasingly capable of higher speeds.
    The committee also performed detailed evaluations starting with materials
specified for the tire components and the entire process of tire development
from design to finished product.  This resulted in the identification of areas
for improvement in product evaluation methods, and work has begun on the
creation of a standard system for product testing.
    Design reviews and computer analysis have long been used to support the
development process, but their application differs among Bridgestone member
companies.  As part of its work, the development committee is standardizing
the methods and system for using these tools with the goal of establishing a
global standard for tire development throughout Bridgestone's global
operations.
    One example is the product specification control system, which aids in
defining the tire materials and dimensions, tire size (type), and market
requirements for performance parameters. The Bridgestone Group of companies
will work together to unify the specifications control systems.  Additionally,
the companies will make broader use of their development expertise in areas
such as the "body" of the tire or the casing materials.

    Production review committee examines tire production and North American
    plants
    This group's investigation centered on whether the quality of tires
currently being produced were acceptable and on whether the control systems
that support manufacturing or the control of the "4M" factors (manpower,
machines, material, methods) and the level of quality assurance were adequate
to ensure consistently good quality.
    Compliance with tire standards in the five BFS North America plants
examined was found to be extremely good.  No irregularities were found that
would affect tire durability, the issue in question with regard to the
recalled tires.  Also, all the plants have achieved and maintained QS-9000
certification, which requires compliance with production process control.  The
plants were determined to have more than adequate levels of control.
    While the group identified some minor issues, for example, visual
appearance and the need for global standardization of business systems, none
of the identified items related to safety or durability.  In addition, these
areas for improvement already are being addressed.  BFS will be able to tap
the Bridgestone Technical Center in Tokyo for practical support as needed for
actual implementation.
    BFS intends to continue upgrading its production facilities and processes
in order to respond to new requests from customers, meet anticipated stricter
tire regulations and make changes to product specifications as a result of the
just completed comprehensive review.
    The company is planning to invest approximately $50 million in additional
capital spending in 2001 in order to make further quality improvements and to
respond to changes in product specification.