Update from John Lampe,
CEO, Bridgestone/Firestone, Inc.
NASHVILLE, Tenn. (October 17, 2000)
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Last week, when I was named CEO, I
emphasized that completing the recall as quickly as possible
remains our number one priority, which we fully expect to
complete by the end of November. As of today, we have replaced
more than 4.2 million tires. We are continuing to maximize
production of replacement tires; currently replacing about
80,000 tires a day through our 13,000 authorized outlets.
In addition to completing the safety
recall as soon as possible, I also pledged to take the necessary
steps – no matter how difficult – to begin to revitalize
the Firestone brand and our company. I also said I would
communicate more openly about significant developments taking
place at the company.
In one of my first steps since assuming
my new role, I am announcing two important actions designed
to help ensure the financial health and vitality of our company.
Specifically, in order to lower inventory levels we will be
reducing our manufacturing schedule at our LaVergne, Decatur
and Oklahoma City plants. At LaVergne and Oklahoma City we
will take 28 days out of production before the end of this
year. At our Decatur plant, we will be implementing an indefinite
layoff at the Decatur plant beginning October 29, which we
expect to affect about 450 employees. In addition, we will
curtail production at Decatur for 14 days in December.
Certainly, I understand the hardship
that this news places on our employees. And while there is
no good timing for this kind of announcement, I feel it is
important that we share this information with our employees
now, so they can begin to plan for the impact this will have
on their lives.
I want to be clear – the actions
we’re taking today will not impact the speed of our recall
efforts. Production of replacement tires continues uninterrupted.
As other important developments arise, I will be communicating
with you.
