Based in Japan, Bridgestone Corporation is the world’s largest tyre and rubber company.
The US Government has asked Firestone to recall another 3.5 million tyres. Shigeo Watanabe, president of Bridgestone stressed that this was not a recall, but a replacement programme as Bridgestone Firestone had not admitted any defects. The tyres being exchanged are P235/75R15 and P255/70R16 fitted to Ford Explorers and Mercury Mountaineer SUVs up to 1998.
DAF models 45 and 55 and also the successor series LF will be fitted with Bridgestone R 227 tyres on the steer axle and M 729 on the drive axle. It is the first time that Bridgestone has been chosen on an exclusive basis in this middle class truck segment. The choice is part of a long term contract with Paccar, the American parent company of DAF. The trucks will be produced in the UK at the former Leyland plant.
The Tanzanian parliament was told yesterday that the Arusha-based General Tyre factory was coping with producing passenger car tyres but was failing to produce truck tyres. Government taxes on imported truck tyres were punishing domestic businesses which had little choice but to buy imported Bridgestone and Michelin truck tyres.
Bridgestone/Firestone UK (BFUK) has been presented with a “2000 Supplier Award” by JCB, one of only five companies to receive awards and the only tyre company to be nominated. The award was given for supply service, product quality, innovation and cost reduction. John Patterson, JCB’s CO, presented the trophy to Jim Wilson, MD of BFUK, at the JCB Suppliers Conference.
Whereas the incidence of car tyre retreading is slowly diminishing (in summer tyres this segment is virtually insignificant, in winter tyres market shares are falling dramatically and are approaching the ten percent mark), truck tyre retreading seems to be stable across Europe. But there are significant national differences especially regarding the incidence of retreading and the relationship between new tyres and retreads. Looking back over the last decade, not from the technological viewpoint but at the main players and their market shares, it was (before Michelin’s Recamic came on the scene) the Marangoni group (including Ellerbrock), which showed most growth. Kraiburg also showed positive development but the world’s no 1 in cold retreading Bandag showed signs of stagnation. If these three players have improved, strengthened or defended their market shares then there must also be losers, these being the new tyre producers who supplied the retreaders with materials for their business but especially the hot retreading. The four big players in the European truck tyre market (Michelin, Goodyear, Bridgestone, Continental) have tied up packages which should be regarded by the retreading specialists (like Bandag, Marangoni/Ellerbrock, Kraiburg) with some discomfort because the result is a lessening of their influence. New tyre manufacturers, retreaders and dealers find themselves as part of a package. The importance of retreaded truck tyres grows, while the importance of retreaders shrinks. The retreaded truck tyre is an integrated part of a very complex marketing concept. The retread is another item in a customer relation program, a marketing instrument, which is designed to lead to the sale of the next new tyre.
In the USA, the National Highway Traffic Safety Agency has reported another 29 deaths linked to alleged failures of Firestone tyres. This raises the total of fatalities under investigation to 148 and injuries to 525. Five of the 29 deaths involved Firestone tyres not included in the voluntary recall.
Finger pointing between Ford and Bridgestone/Firestone is continuing and has reached the point where the tyre manufacturer has terminated its business relationship with Ford after 100 years. In a written statement, BF-boss Lampe said “we believe that the auto maker is attempting to divert scrutiny of the vehicles by casting doubt on the quality of Firestone tyres. The tyres are safe and as we have said before, when we have a problem we will acknowledge that problem and fix it. We expect you (Ford) to do the same.” The assumption that Ford’s Explorer is a problem-car seems to be based also on the fact that Ford felt forced last week to recall more than 50,000 Ford-Explorers equipped with Michelin and Goodyear-tyres, avoiding the word recall but calling it a “Customer Satisfaction Program.” While the business with Ford accounts for only five per cent of BF’s total turnover, virtually everything depends on the success of the Explorer for Ford; the company’s best selling car for years and its cash cow.
Tyre importer, Hankook Tire America has joined Goodyear, Michelin, and Bridgestone in donating funds to assist the victims of the terrorist attacks on the 11th September. 100,000 dollars are being donated to the American Red Cross.
The following nominations will be made at the meeting of Bridgestone Corporation shareholders, to be held on March 29. New board members: Osamu Inoue, currently plant manager, Hikone Plant and John T Lampe: CEO and president, Bridgestone/Firestone Inc. Retiring from the board: Yoichiro Kaizaki, president, chairman and CEO, Tadakazu Harada, executive vice president, Katsuyooshi Shibata, executive vice president, president of Bridgestone Cycle Co. and Hiroji Ohbuchi, president of Bridgestone Tire Osaka Sales Co. Shibata will continue as president, Bridgestone Cycle Co. and Ohbuchi as president of Bridgestone Tire Osaka Sales Co. after 29 March.
Ford chief Jacques Nasser faced some tough questioning at yesterday’s Congressional hearing into the Firestone tyre/Ford Explorer situation. ‘Billy’ Tauzin, from Louisiana, revealed that one of the brands of tyre being used to replace the Firestones had a failure record nearly 25 times worse than the Wilderness. Nasser said that, if this was correct “then we’ll act on it”. Tauzin also criticised BF Inc’s John Lampe of attempting to shift the blame on to Ford.
Ford has issued a comprehensive report in which it places the blame for the fatal crashes involving the Ford Explorer fairly and squarely on the Firestone tyres and not the vehicle. Ford contends that the Explorer is no more prone to rollovers or tyre failures than any other medium-sized SUV. Bridgestone/Firestone disagrees, saying that tyre and vehicle makes up an integrated system and any investigation has to take the vehicle into consideration. It also criticised comparative temperature tests on Firestone and competitors’ tyres, saying that they measured only external temperatures and took no account of internal running temperatures.
Although happy with the performance of Bridgestone tyres, McLaren are said to be considering switching to Michelin next season. The Michelins have performed well for competing team Williams, but are said to need further development. McLaren feel that any improvement in performance from the Michelins could put them at an advantage against arch-rivals Ferrari.
It was December 1999, when Michelin announced its comeback to the Formula 1. In the 80s the French company held a leading position and withdrew after having proved to itself and the world that it could build unbeatable racing tyres. When the 2001 Grand-Prix season starts in Melbourne on March, 4th it will also be the start for an additional tyre supplier called Michelin. BMW/Williams, Mild Seven, Benetton, Renault Sport, Jaguar Racing and Prost Grand Prix have already chosen Michelin, and Toyota will join the club next year. So far, the Japanese Bridgestone seems to have an advantage. As suppliers to Ferrari and McLaren Mercedes they are already covering the “favourites” with four “winning” cars, whilst the other teams have to come from behind. There are various reasons for these racing teams to have chosen Michelin. Renault and Michelin simply belong together. And that Toyota, “the” motor-car company is fighting for points all over the world on Michelin tyres isn’t a minor consideration. At the press conference Edouard Michelin appeared as a truly enthusiastic company leader with a sense of sport. Michelin is not some newcomer to the scene who does not know what’s going on. The team around Edouard Michelin know this and that is why they are competing. They want to prove to themselves and the world, that there is only one company able to build the best tyres in the world: Michelin! Hence, Edouard Michelin enthusiastically let himself get carried away to imagine that in the future people will say that Formula 1 will be won on Michelin. The winner runs on Michelin, all others are on tyres.
The UK newspaper Financial Times has published its annual list of the world’s 500 largest companies, ranked by market capitalisation. The only tyre company to appear last year was Bridgestone, at number 300. The company does not make this year’s global top 500. Among Europe’s top 500 are the following tyre companies, with their positions. Michelin (301) Pirelli (242) and Continental (479). Mention should be made too of Sabanci Holdings, the ultimate parent of Lassa/Brisa, which appears at number 331 in Europe.
Bridgestone/Firestone Brazil’s former vice president of legal and government affairs has been promoted to the managing directors’ post upon the retiral of Vito De Florio on 1st October.
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