Bridgestone Americas Tire Operations announced it will cease passenger and light truck manufacturing at its LaVergne, Tenn., tire plant, and cut the number of commercial truck and bus tires it is producing, due to negative economic conditions.


"Based on current economic forecasts, it appears that the global economic crisis is going to get worse before it gets better. We are not immune from these challenging times," said Steve Brooks, President, U.S., Canada and Monterrey Manufacturing Group, BATO.

The cessation of consumer tire manufacturing at the plant will result in a permanent reduction of 543 jobs, a number which includes the 148 hourly and 10 salaried teammates who were part of a December 2008 layoff and who were primarily involved in consumer tire manufacturing.

The next step in the process is to negotiate with the union the terms under which passenger tire production at LaVergne will be phased out.

Due to the continuing global slow-down in truck tire demand, BATO will reduce commercial truck tire production, which will result in additional layoffs at the plant. The company will implement a layoff of approximately 191 hourly, 34 maintenance and 34 salaried teammates beginning in mid-March.

"We hope that the economy will begin to recover later this year; as a result we also hope that we will be in a position to begin calling teammates back to work in the truck and bus tire production area, perhaps as early as the fourth quarter of 2009," Brooks said. "Our hope is that all truck and bus production teammates can return to work by the end of the first quarter of 2010. The truck tire market is often seen as a leading indicator of how the economy is doing. As consumer confidence begins to improve and consumer spending increases, more trucks - and truck tires - will be needed to address consumer demand."

Truck tire manufacturing will continue at LaVergne with an enrollment of more than 700 teammates (hourly, maintenance and salaried).