Firestone Layoffs?

Firestone adjusts to tire demands
Plant extends Christmas shutdown

A lack of demand for new car tires has Bridgestone Firestone shifting gears on the production schedule for its Wilson plant.

The plant was to operate this year in the days following Christmas, but will now shut down Dec. 28-30. The plant will be closed from Dec. 24 through Jan. 1.

"We want to get our inventory back in line," said Jim Pridgen, plant manager. "People just aren't spending money right now."

As a result of a reduction in new car production, tire companies are seeing a tremendous reduction on the new equipment side and a less dramatic drop in tires made for retail stores, he said.

Pridgen said the good thing is that the Wilson plant isn't being affected as much as some other plants making ties for major tire companies.

"Because we've gone through the retooling process, we're not tied to the original equipment market," Pridgen said. "It makes us very flexible and valuable to the organization as a result."

He said the plant can boost its production of "trade items," or tires sold in the company's retail centers and other tire stores that go on existing vehicles.

"We can offset a downturn in one arena and move our production in another," he said.

Because of the economy and sales being down, the Wilson plant has already taken some steps to slow down its production, Pridgen said.

He said in October the Wilson plant scaled back on hours by cutting its overtime shift -- Saturday 4 p.m. to midnight.

"The plan is to ramp back up to full production in April 2009," Pridgen said.

The Bridgestone Firestone plant typically has two major shut-downs a year, depending on what type of preventative maintenance or capital project installations and modifications need to be done, Pridgen said.

Those shut-downs happen after Christmas and around July 4.

The difference is that this year the plant had not planned to shut down those days. Employees will be allowed to take vacation days so they won't have a financial loss, Pridgen said. The plant will operate a day shift for two of those days to work on other projects.

These adjustments are designed to keep the plant on course, he said.

"We have never had a layoff, and right now, I don't see the need for one," Pridgen said.

On the contrary, the plant is still hiring and will add 30 to 40 people in December.

Including contractors, the Wilson Bridgestone Firestone plant employs about 2,200.

Bridgestone Firestone layoffs won't affect Wilson plant

By Antonio Velarde | Daily Times Staff Writer

With decreased demand for passenger and light truck tires spurred by a global economic downturn, Bridgestone Firestone North American Tire announced Monday it is laying off 158 employees at its plant in La Vergne, Tenn.

But corporate officials said the layoffs shouldn't affect the company's Wilson plant.

Steve Brooks, president of manufacturing for the company, said after the Wilson plant and the company's other operations inside and outside the U.S. reduced production hours and overtime to counter the lack of demand for products, the company had to take a drastic step with the reduction of 148 hourly and at least 10 salaried employees from La Vergne beginning Dec. 21.

The La Vergne plant, which makes bus, passenger and light truck tires, employs 1,700.

But he said the Wilson plant, which also makes passenger and light truck tires, will continue to operate on its scheduled budget for next year with slightly reduced daily production goals for its products.

Brooks, who added there are no plans for layoffs at the Wilson plant, said the company hopes demand for consumer tires will rise next year and that production will increase.

"So we hope that we'll see a trend toward economic recovery," Brooks said.

And with company officials looking at the possibility of halting consumer tire manufacturing in La Vergne, which could push layoffs there to more than 500 hourly and salaried jobs, Brooks said, increased demand for consumer tires could mean good things for Wilson.

"Initially, because the demand is so low, there would be little, if any, impact to Wilson," Brooks said. "But when the demand returns and increases, then that means that new sizes that are developed and new lines that are developed would have to be distributed among remaining plants."

But he stressed that it would only happen "if and when demand returns."

He said company employees and union officials were given notice of the possibility of the further cuts on Monday.

He also declined to speculate on the possibility of future layoffs or cuts, as the situation could always change.

Dan MacDonald, executive director of communications for the company, said that since demand for tire products is down, the company has had to take drastic steps to align production goals with demand.

"We're at a point now where we have to do something more," MacDonald said.