By TIMOTHY AEPPEL
Staff Reporter of THE WALL STREET JOURNAL
Bridgestone/Firestone Inc., moving to give its top managers better
oversight of its troubled tire-making activities, is consolidating the
operations into four business units.
The restructuring is part of Firestone's effort to
restore its reputation and market share in the
wake of the recall of 6.5 million tires, allegedly
linked to more than 165 fatalities in the U.S. and
overseas. The tire maker's executives have
blamed its slow response to the problem on the fragmented structure
of the company, which made it difficult for data about tire failures to
be
quickly identified and acted upon.
Two of the most-sensitive operations -- consumer tire and
manufacturing and technology -- will be headed by Japanese executives.
Those businesses, while they didn't formally exist until Wednesday,
were nonetheless the focus of the recall crisis. Firestone's parent,
Bridgestone Corp. of Japan, has also sent its director of tire
development and general manager of tire-material development to
Firestone, underscoring a pledge by Bridgestone to bring the U.S.
operations up to Japanese standards.
Firestone said it is merging 16 separate business divisions into four
operating units: commercial tires; consumer tires; international tire
operations; and manufacturing-and-technology operations. The move
reverses the decentralization implemented in the early 1990s. Five
nontire businesses, such as industrial products and fibers and textiles,
will remain separate divisions.
John Lampe, Firestone's newly appointed chief executive, said in a
statement that the company's emphasis now would be on better
information-sharing "and more direct accountability at all levels inside
the company." All four new units will report directly to Mr. Lampe.
Shu Ishibashi, a 46-year-old rising star at Firestone who has a strong
reputation in sales, will head the consumer-tire business. The new unit
combines a business that sold tires in the replacement market and
another that dealt strictly with sales to car makers for use on new
vehicles. The new international tire-operations unit will be headed by
Mark Emkes, 47, previously president of Firestone's Brazil operation,
while Chuck Ramsey, 51, was put in charge of the commercial-tire
group.
Isao Togashi, 58, who was named vice-chairman of Firestone at the
time of Mr. Lampe's promotion, will head the new manufacturing and
technology operations unit under the new structure.
Mr. Togashi is expected to lead a drive aimed at upgrading Firestone's
manufacturing and research base. As part of the management changes
announced Wednesday, Firestone said Shigehisa Sano would move to
the U.S. from Japan to work under Mr. Togashi as president of product
development. Mr. Sano, 54, is formerly director of tire development for
Bridgestone and is on the board of the parent company. Also reporting
to Mr. Togashi will be Itsuo Miyake, 53, former general manager of
Bridgestone's tire-material development in Japan, and newly named
president of Bridgestone/Firestone research.
Write to Timothy Aeppel at timothy.aeppel@wsj.com