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. (December 19, 2000) - 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, Joliette, 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.

Quality assurance group recommends early warning safety systems and procedures

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.