Bridgestone outlines European restructuring in 24MBP

Bridgestone Corporation has presented its Mid Term Business Plan (2024-2026), and for Europe this entails significant restructuring and rebuilding within the truck and bus tyre as well as the retreading business. Chief executive officer Shuichi Ishibashi and Masato Banno, the company’s chief technology officer, discussed 24MBP on 1 March.

The aim in Europe is for a revenue growth rate of 115 per cent between 2023 and 2026 as well as to increase profit margin from one per cent to eight per cent. “During 24MBP, we are going to restructure and rebuild the retail TB (truck/bus) and retread business,” stated Ishibashi. “Europe has a deep-rooted set of issues that we have to address, so we are going to change the shape of our business, from production, sales and solutions, and the entire value chain. “We are going to focus our attention on the premium business.”

Production, sales & retreading adjustments

In the area of production, Bridgestone intends to “adjust” production capacity to match its sales plan and to increase fixed cost efficiency. It will do so by shortening operating times and “adjusting personnel” at three truck and bus tyre plants in Europe; the company names its two plants in Spain as locations that will be affected. Bridgestone will also extend its focus upon premium in both the truck/bus and passenger tyre businesses. “We are going to reduce non-profitable businesses,” says Ishibashi.

Changes to sales operations will see a simplification of the organisational structure within Bridgestone’s wholesale business, again with the aim of reducing fixed costs. Furthermore, the company plans to “fundamentally review retail activities” with the support of its West U.S. retail team, a process that began in October 2023. “This will become profitable according to our plan from 2026,” Ishibashi comments.

By reducing unprofitable business and focusing on the premium sector, Bridgestone plans for its European truck/bus activities to become profitable from 2025. At the same time, a restructuring of the region’s retreading business will begin this year, with the aim of becoming profitable from 2026.

Further details are available here.