Current Issue

1991— A look into the past: BFS moving headquarters to Tennessee

Comments Email
1991 BFS Tenn headquarters

(Editor's Note: This story is part of our #TireBiz30 in which we feature one archived story every day of September to celebrate Tire Business' 30th anniversary. Each story represents one of the most relevant news story published in our pages for that year.)

AKRON — Bridgestone/Firestone Inc. veri­fied June 18 what had been whispered about in its corporate hallways for weeks: It will relocate its corporate headquarters staff from Akron to Nashville, Tenn.

The move will result in the loss of an un­determined number of jobs among the 1,350 currently employed at the firm's Ak­ron operations.

The relocation, to be completed by year's end, will involve the transfer of Yoichiro Kaizaki, Bridgestone/Firestone chairman and CEO, and James P. McCann, president and chief operating officer, as well as an undetermined number of Bridgestone/Fire­stone executives. Other positions will be evaluated on a case-by-case basis.

The move marks the third time in the last four years that the tire maker's head­quarters has been relocated.

Mr. McCann, who oversaw the establish­ment of Bridgestone's Nashville headquar­ters in the late 1980s, attributed the sud­denness of the announcement, in part, to the need to quell the "many rumors" circu­lating within and outside the company.

"We are not yet ready to announce the number of positions involved in the move, but they will be identified as quickly as possible, and every employee whose job function is transferred to Nashville will be given the opportunity to relocate," he said.

Five operations are remaining in Akron, although a company spokesman said their future still is under evaluation. Those oper­ations are: research and development, syn­thetic rubber, a computer center, race-car tire manufacturing and some miscellaneous corporate functions.

In weighing the relocation, the company reviewed various options for establishing new headquarters, including the Akron ar­ea, Mr. McCann said. "However, we believe Nashville makes the best sense for us," he said.

Moving south brings company executives closer to the 200 Bridgestone Tire sales and marketing personnel based in Nashville. The Tennessee site also is near two of the firm's tire plants-La Vergne and Warren County-which employ about 2,000.

"Nashville is centrally located to our plants, to other Bridgestone/Firestone oper­ations and to our original equipment and replacement customers," Mr. McCann said. The city also is near a major international airport, which Akron doesn't have.

No external factors, such as tax breaks from Nashville or the lack of incentives from Akron, prompted the decision to move, a company spokesman said.

Job losses in Akron, according to indus­try sources, could range from fewer than 200 to a total closure of the headquarters. "More will stay than go," the Bridgestone/Firestone spokesman said.

Harry Millis of Fundamental Research Inc. said he leans toward a smaller num­ber: 150 moving this year, with another 150 to 200 possibly moving later.

The 65,000-sq.-ft. Nashville headquarters has no room to accommodate the Akron personnel. Initially, the firm is likely to lease a facility in the Nashville area for the northern contingent.

Mr. Millis expects the Akron site to re­main open for the foreseeable future, but virtually no decision-making will be done there. While the analyst was slightly sur­prised by the timing of the announcement, he said it's another indication of how the tire industry is changing.

"This is just a further sign of what was already obvious: Bridgestone is assuming firm control of Firestone," he said, adding that perhaps it is a move by the Japanese parent to remove the subsidiary from the "traditional North American tire culture" Akron represents.

Analyst Donald DeScenza of DeScenza ­Murphy & Co. agreed Akron holds only symbolic historic significance for Firestone. "What (the move ) means is that Firestone has been completely absorbed by Bridgestone," he said. "(Firestone) is not independent or autonomous anymore."

Analysts in Japan echoed the sentiments of their North American counterparts. "In terms of actual impact, 1 doubt there will be any," said Stephen Usher of Kleinwort, Benson International. "But in terms of what it signals, the message now is that Firestone clearly is a subsidiary of Bridge­stone. It's an indication that the (Bridgestone/Firestone) operation finally will be integrated into Bridgestone and that Bridgestone is calling the shots."

Michael Remington of S .G. Warburg Securities (Japan) Inc. called the decision "only a big move in terms of distance. Frankly, we had hoped for something different early in Mr. Kaizaki's tenure­ something that would address the more painful decisions that will have to be made, like closing a plant or laying off workers."

Firestone isn't a stranger to moving. In 1987, John Nevin, then chairman of Fire­stone, relocated the corporate headquarters to Chicago, wanting the company to be in a major economic center.

Two years later, after Bridgestone had purchased Firestone, the firm announced it was consolidating operations in Chicago and Nashville back in Akron.

According to a Bridgestone spokesman, the return to Akron in 1989 was orches­trated by former Chairman George Aucott, who had taken over as chairman of Bridge­stone/Firestone from Mr. Nevin.

The current Chairman, Mr. Kaizaki, now is correcting this with the Nashville move, he said.

More Polls>

TB Reader Poll

Previous | Published December 17, 2018

Is it finally time for Christmas music?

Yes! Has been since Nov. 1
17% (21 votes)
Sure, now that December is here.
68% (86 votes)
Give it a few more weeks.
7% (9 votes)
Never. It is never time for Christmas music.
9% (11 votes)
Total votes: 127
More Polls »