Bridgestone looking to save €400m through cost-cutting measures

Tokyo – Bridgestone Corp. is looking to reduce costs by Yen65 billion (€400 million) by the end of 2024 through various cost-saving measures across its global operations.

Among other steps, the group aims to reduce fixed costs in sales, production and inventory, “in line with the number of units sold,” Bridgestone announced 9 Aug.

In particular, Bridgestone plans to ‘optimise’ production capacity mainly for truck and bus tires in North America and Europe, it added in its first half financial statement.

The process will involve shortening the number of operating days and suspending some process activities to improve the profitability of the TBR business.

As part of the initiative, Bridgestone also aims to “review, reduce and optimise” production-related investments from the second half of 2024 to 2025.

Other planned moves will include cost-reductions in global procurement; transformation of logistics globally, employment of BCMA* and a shift to ‘green & smart’, Bridgestone added.

To that end, Bridgestone said it expected to ‘reduce assets’ through inventory reduction, contributing a total of Yen51 billion globally for the full year.

The Japanese group will then “establish a lean system structure for 2025," it added.

Across the entire value-chain, Bridgestone said it expects to cut costs by Yen65 billion for the full-year, with savings of Yen34 billion to be achieved in the first half.

*BCMA (Bridgestone commonality modularity architecture) is designed to modularise complex tire components in three sections: carcass, belt and tread.