Based in Japan, Bridgestone Corporation is the world’s largest tyre and rubber company.
National Tyre Services Limited (Zimbabwe) has invested $20 million on the commissioning of a third curing chamber at its Harare Bandag factory. The investment comes at a time when other companies are closing shops or relocating to other countries. NTS Zimbabwe is an official re-distributor of Dunlop tyres and is now the largest customer in southern Africa for Bandag products.
In J.D. Power’s 2002 Global Component Branding Study, tyres and stereos came top of the list of components for which consumers prefer brand names. 68 per cent of respondents in Europe, Japan and the USA said it was important to have branded tyres, although awareness levels differed. No doubt prompted by recent recalls, more than 80 per cent of US respondents said tyre brand was important, compared to less than 20 per cent of Japanese. 17 brands were included in the study and the leading brands were Michelin, Pirelli, Goodyear and Bridgestone. Michelin’s brand was the strongest in Europe and the USA and Bridgestone was tops in Japan.
The year 2000 tyre recall, with all its consequences and financial difficulties, is more or less over. Sales in North America are strong, plus the performance of the Firestone brand has been stabilised, while the Bridgestone brand managed a growth of 30%, said John Lampe, CEO of Bridgestone/Firestone Americas Holding Inc. yesterday on TV. The fact that Lampe (who has turned out to be a charismatic leader by virtue of his tough battle with his biggest customer Ford, admired by all Bridgestone/Firestone employees in America) appeared on TV this week is another blow for the morale of Goodyear people. Last week they were told by CEO Gibara and his successor from the 1st of January next year, Keegan, that the Corporation has lost market share and has been unable to produce good results on its home market so far. This is forcing the company into the next round of restructuring and cost saving measures. According to Gibara the company is no longer able to pay the health costs at the same high rates as in the past, but has to reduce these costs immediately. This is a consequence, said Gibara, of fierce competition. Employees also fear that the company might lay off thousands more associates in order to reduce costs.
Good news for manufacturers and truck tyre distributors in the UK – truck tyre prices of several leading brands are set to increase. Goodyear prices have already been increased by 3.5 per cent and Bridgestone prices are set to rise by an average of 3.5 per cent also. Pirelli has confirmed that it will increase its truck tyre and retread prices by 4 per cent in November and Michelin is said to have increased new truck tyre prices by 3 per cent, Remix prices by 2.5 per cent, with no change to Encore prices. The rising cost of raw materials is cited as the main reason for the increases.
The Bridgestone Potenza RE92 has been selected as the OE tire for the new 2003 Subaru “Baja.” Bridgestone/Firestone North American Tire Company is supplying the tyre in size P225/60R16 in an H-speed rating. While the H-speed rated all-season Bridgestone Potenza RE92 has been available for some time, raised white letters on the tire sidewall are a feature designed for Subaru.
In Germany, VW/Audi has embarked on a press publicity campaign for winter tyres. The program runs for October/November and includes tyre and wheel assemblies with tyres from companies Bridgestone, Continental, Dunlop, Goodyear, Michelin, Pirelli and Mabor Winter Jet, a Continental house-brand. The interesting point is that, when the tyre is purchased, a storing service is offered, accompanied by a free guarantee. The 24-month guarantee includes protection against punctures, damage caused by kerbing and vandalism. The guarantee is not restricted to VW or Audi cars. More information will be available under www.reifengarantie.de, although the page is not yet up and running.
A Class Action lawsuit against Bridgestone/Firestone filed on the 12th August in California has been transferred to the Eastern District of the US District Court. Thus allowing Federal jurisdiction on the California originated case. The Class Action lawsuit alleges that Bridgestone/Firestone’s Steeltex R4S, R4SII and A/T tyre series contain a lamination defect which can, and has allegedly, caused the entire tread of the tyre to separate leading to the tyre’s destruction. Causes of action in the lawsuit charged the tyre manufacturer with Fraudulent Concealment, Deceptive Practices in Violation of the CLRA, Violations of the Unfair Practices Act, Negligence and Strict Liability. Commenting on the removal of the lawsuit to federal court, Lisoni, acting for the plaintiffs, stated: “This legal action was filed to protect and represent the interests of Americans throughout the country who have purchased one of the more than 27.5 million Steeltex tyres manufactured.” Lisoni emphasised he has received scores of reports from Steeltex tire owners nationwide of tyre defects and damages as well as accidents and injuries resulting from the defects. The purpose of this lawsuit is not about money, Lisoni stressed, adding: “First and foremost, it is to motivate Bridgestone/Firestone to take responsibility for their defective product and do what is best for the safety of its customers-immediately recall the entire Steeltex tyre series.”
Kumho Tire Company is the eleventh new tyre manufacturer to support the Tire Retread Information Bureau (TRIB). Other new tyre manufacturers who are currently TRIB members include Bridgestone/Firestone, Cooper, Dunlop, Goodyear, Hankook, Hercules, Kelly-Springfield, Michelin, Sumitomo and Yokohama. “We are very pleased that Kumho Tire Company has decided to support TRIB. They, along with our other new tyre manufacturer members, realise that TRIB’s efforts on behalf of retreading benefit the entire truck tyre industry,” said Harvey Brodsky, TRIB’s Managing Director. Brodsky said that TRIB is actively contacting all other new tyre manufacturers throughout the world with an invitation to join the Tire Retread Information Bureau.
Bridgestone Firestone Americas Holding Inc. has appointed Mark Emkes (49) as chairman, president and chief executive of Bridgestone Firestone North America, effective from Monday. Mr. Emkes has been with the company for 26 years and most recently headed up Bridgestone Firestone’s business in Latin America. He succeeds Isao Togashi, who has returned to Japan as head of global manufacturing for the Bridgestone Corporation.
In the USA, Bridgestone/Firestone is voluntarily recalling 754 wrongly-marked Widetrack brand Baja A/T tyres, made over a three week period in 2001. The incorrect markings on the sidewall understated the maximum inflation load of the tyre.
Formula One team Sauber-Petronas and Bridgestone have agreed to continue their co-operation and the Japanese tyre maker will supply Sauber until 2004.
Last year Michelin achieved total sales of $13.4 billion, putting the company ahead of Bridgestone ($13 billion) and Goodyear ($12.5 billion). However, in unit terms, Goodyear considers itself the largest manufacturer with an output of 219 million tyres.
Automotive safety experts in the USA have said that “erroneous inflation recommendations from Ford” may have played a part in the recent recall of nearly 600,000 Continental tyres, fitted as OE on Ford Expeditions and Lincoln Navigators. Rear tyres should have been inflated to 33 p.s.i., but Ford recommended 30 p.s.i. It has not been determined whether or not low pressure contributed to the current recall, but some observers pointed to the difference in recommended pressures by Ford and Bridgestone/Firestone as a factor in the spate of accidents involving Explorer SUVs and Firestone tyres.
Bridgestone shares dropped by 5.4 per cent following the filing of a lawsuit by an American lawyer, calling for the recall of 27.5 million Bridgestone Steeltex tyres. Potential costs of the action are estimated at $2.75 bn. The fall in share price and possible damage to brand image appear to be unwarranted, as the National Highway Traffic Safety Administration has already investigated the tyre and officially announced that it found no defects on Steeltex tyres.
Bridgestone Corporation appears to have come through the Firestone recall nightmare, with first half figures showing a net profit of nearly 24.5 billion Yen (218 million Euros), compared to a loss last year of 30.5 billion Yen. The company has increased its profits forecast by 5 billion Yen to a full year profits figure of 70 billion Yen and also announced that production would be increased at 12 plants over the next two years, boosting annual output by 8 million tyres. Bridgestone shares in Tokyo rose 6.4 per cent at the news, reaching 1,685 Yen.
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