Bridgestone prepares to cease car, light truck production at Lavergne plant

ERJ staff report (DS)

Nashville, Tennessee -- Bridgestone Firestone North American Tire said that from 21 Dec., 2008, it will lay off a further 148 hourly and at least 10 salaried team members at its LaVergne, Tennessee, facility, and may within six months close the facility, due to a decrease in demand for passenger and light truck tyres. The LaVergne plant, which employs approximately 1700, manufactures truck and bus tyres in addition to passenger and light truck tyres.

The company advised Union representatives that it may be necessary to cease most or all passenger and light truck tyre production at the LaVergne facility. The company said it has provided union leadership with a letter that can serve as a six-months notice of the potential cessation of passenger and light truck tyre manufacturing at the plant. The announcement of the company's intention to seriously consider elimination of consumer tyre production at the LaVergne facility will have no impact on the plant's production of truck and bus tyres.

The company has already adjusted production levels to address slowing demand, but said that, "due to the increasing impact of the global economic crisis that has resulted in a further weakening and decrease in demand in the North American tire market, the company will take this additional step to reduce manufacturing capacity in North America."

While no final decision has been made regarding the elimination of consumer tyre manufacturing at the LaVergne plant, the decision to put this idea “on the table” for serious consideration was an extremely difficult one, as was the announcement of the layoff beginning Dec. 21, said the company.

Prior to making any final decisions , the company said it stands ready to immediately begin discussions with the USW on what, if any, actions could be taken to continue consumer tyre production at LaVergne. If, after these discussions, the company decides to cease passenger and light truck tyre production at the plant, the decision could take effect as soon as 30 June, 2009. This action could result in the elimination of approximately 500 hourly and salaried jobs, said Bridgestone.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

Press release from Bridgestone