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Bridgestone Halts Production to Cut Stocks

Since car manufacturers across the world are severely reducing production in the light of the financial downturn, tyre makers can not be doing any better.

According to drive.com, tyre producer Bridgestone Australia is going to close its Adelaide manufacturing plant for two weeks in April in order to cut stocks. Although the plant will be closed from April 14 to 27, the company announced that none of the 600 Bridgestone employees working there will be laid off.

"This step is a reflection of Bridgestone Australia's ability to react quickly and prudently to the current situation to ensure we protect the long-term viability of our manufacturing business and the jobs of our valued employees," said Bridgestone Group chairman and managing director Shawn Hara. "The economic slowdown is having an impact on consumer demand around the world and Australia is no different," he added.

In addition, Hara explained that Bridgestone does not depend only on Australian car manufacturers as the majority of its production in Adelaide is sold through the replacement market.

"Therefore, we believe this (downturn) presents tyre retailers with a significant opportunity, as consumers will need to maintain vehicles for longer - including fitting new replacement tires," he confessed. "From purely a Bridgestone point of view, we also see an opportunity to reinforce the quality of our product with our consumer market,” he added.

Therefore, the Australian tyre maker seems to be quite optimistic about the future and no other shutdowns have been planned...yet.

More importantly, Hara believes the good image of the company is going to play its part during the hard times. "When times are tough, consumers will revert to brands they trust," he thinks.

 

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