Bridgestone ‘rebuilding’ European operations under “focused management” plan

Tokyo - Bridgestone is planning to “rebuild” its European tire business under its mid-term strategic management plan (2024-2026), the group has recently announced.

According to a group statement issued 16 Feb, fundamental weaknesses in its management approach were exposed last year by the economic downturn.

A deterioration in the business environment, it said, generated "challenges to business-quality, such as accuracy in demand/sales forecasts mainly in North America & Europe," it added.

In the "severe business environment" in Europe, continued Bridgestone, it "could not balance price & quantity, weak channel foundations were exposed, and a reduced customer-base became a challenge." 

As a result, Bridgestone's sales in the region dropped to approximately 70% of the prior-year level, while the group also noted a "significant decline" in market-share in the region.

Furthermore, profitability within the business unit also deteriorated, especially in retail, truck & bus as well as retread areas.

In response, Bridgestone said it aims to “change the shape of business” by further focusing on improving profitability rather than revenue.

The approach, it stated, will include focusing significantly more on premium brands, both in the passenger car and truck & bus tire segments.

We will report further on this development on ERJ On-line and in European Rubber Journal magazine...