DECATUR, Ill. (June 27, 2001)—Bridgestone Corp. in Tokyo is taking $360 million extra in charges related to the recall of 6.5 million Firestone ATX, ATX II and Wilderness AT tires, Bridgestone/Firestone Inc. officials announced at a press conference today.
These costs include $60 million for the recall itself and $300 million in litigation-related costs. This figure is in addition to the $450 million in recall-related charges the Tokyo-based tire firm announced last year.
Also, Bridgestone/Firestone will take a $210 million charge June 30 to account for the closing of the Decatur plant, tentatively scheduled for Dec. 31.
The company must discuss phaseout, severance packages and other issues with the United Steelworkers of America before it can set forth a closure plan.
Officials said they would move capacity from Decatur to other BFS plants in North America, but said it was “inappropriate” to discuss which production would be moved to which facility until negotiations with the union were concluded.