Firestone Tire and Rubber Company

Firestone Tire and Rubber Company
Company type	Subsidiary
Industry	Tire manufacturing
Founded	August 3, 1900; 126 years ago in Akron, Ohio, United States
Founder	Harvey S. Firestone
Headquarters	Nashville, United States
Key people	Paolo Ferrari (CEO and President), Scott Damon (COO)
Products	Tires, automotive services
Number of employees	33,000 (2004)
Parent	Bridgestone

Firestone Tire and Rubber Company is a prominent American tire manufacturer established in 1900 by industrialist Harvey S. Firestone (1868–1938) in Akron, Ohio. The company initially specialized in producing solid rubber side-wire tires for firefighting vehicles before swiftly transitioning to pneumatic tires for wagons and early motorcars. By forming a strategic alliance with Henry Ford, Firestone secured its role as the original equipment manufacturer for Ford Motor Company, cementing its position in both the OEM and aftermarket tire sectors.

As an innovator in large-scale tire production, Firestone expanded to become a significant force within the global tire market. Its headquarters remained in Akron until relocating first to Chicago, Illinois between 1987 and 1989, and subsequently moving to Nashville, Tennessee from 1992 onward. In 1988, the company was purchased by the Japanese tire conglomerate Bridgestone, becoming an essential subsidiary within Bridgestone’s worldwide network.

By 2004, Firestone reported revenues nearing $2.09 billion and maintained a workforce of approximately 33,000 employees globally, supported by a network of 1,700 service centers. Leadership roles were held by CEO and President Paolo Ferrari alongside COO Scott Damon. The company’s strategy emphasizes continuous innovation in tire technology and services, preserving its competitive edge through substantial market share and effective industry leadership.

Early to mid 20th century

Founded on August 3, 1900, in Akron, Ohio, Firestone began operations with just a dozen employees, eventually emerging as a leading tire supplier alongside competitors such as Goodyear Tire and Rubber Company. In 1906, Henry Ford chose Firestone as the exclusive tire provider for Ford automobiles, initiating a vital commercial partnership.

In 1918, the Firestone Tire and Rubber Company of Canada was established in Hamilton, Ontario, with Canadian manufacturing commencing by 1922. The decade of the 1920s introduced the Oldfield tire line, named after famed racecar driver Barney Oldfield.

By 1926, Firestone broadened its international footprint through a substantial rubber plantation located in Liberia, West Africa, covering an extensive area. That same year marked the launch of the first Firestone Tire and Service Center, which offered automotive maintenance alongside tire sales.

In 1927, the company opened a major manufacturing facility in South Gate, California, designed by architects Curlett and Beelman. This plant expanded significantly by 1954 and played a key role in establishing Los Angeles as the leading U.S. market for tires. Nonetheless, industry changes during the 1970s led to downsizing efforts culminating in the plant’s closure in 1980 with considerable workforce reductions.

On the international front, Firestone established a factory in Brentford, England in 1928; this operation continued until its shutdown and demolition around 1980.

The Memphis plant in Tennessee began operations in 1936 and grew to become Firestone’s largest facility worldwide with over 3,000 employees. By 1963 it had produced more than 100 million tires. The plant ceased operations in 1982; its site remains designated as brownfield due to environmental contamination issues.

During World War II, Firestone shifted focus toward military production contracts that included artillery shells, aluminum containers, rubberized military goods, and barrage balloons. The company ranked fifty-fifth among U.S. firms based on wartime defense production value.

In 1951, Firestone won a defense contract for the MGM-5 Corporal missile program, receiving close to $6.9 million for initial deliveries. This surface-to-surface missile was later modified to carry nuclear warheads during the Cold War era before being phased out by 1962.

Key acquisitions included Dayton Tire from Dayco Corporation in 1961 and Seiberling Rubber Company in 1965. A legal challenge accusing monopolistic practices related to Dayton Tire was dismissed by the U.S. District Court.

These milestones illustrate Firestone’s adaptive business approach focused on scaling manufacturing capabilities, diversifying its product portfolio and services, and enhancing market dominance through strategic acquisitions and defense-related contracts.

Corporate restructuring and acquisition by Bridgestone

Toward the end of 1979, Firestone brought in John Nevin, previously the leader of Zenith Electronics, as president to steer the company away from financial ruin. Burdened with debts exceeding one billion dollars and annual losses around $250 million, Nevin responded by shutting down nine out of seventeen manufacturing facilities—six of which were closed in a single day—and moving the corporate headquarters from Akron, Ohio to . To enhance shareholder value, he also sold off non-core assets including the Firestone Country Club.

In 1988, following discussions with Pirelli, Nevin orchestrated the sale of Firestone to the Japanese tire manufacturer Bridgestone at a significantly reduced valuation compared to its previous worth. The two companies commemorated the 20th anniversary of this acquisition in 2008 by renaming their tire division Bridgestone Americas Tire Operations, LLC.

Back in 1972, Firestone had secured a decade-long import concession from the Kenyan government to support its local tire manufacturing plant, effectively granting it near-exclusive market control. After this concession ended in 1979, Firestone ramped up production to discourage competition. Nevertheless, plans for expansion were abandoned and negotiations failed, which curtailed further capital investment.

Since 1992, Bridgestone Americas has functioned as the U.S. subsidiary of Japan-based Bridgestone, relocating its corporate headquarters to downtown Nashville in October 2017.

In April 2012, Bridgestone Americas unveiled a $100 million Bridgestone Americas Technical Center located in Akron, Ohio. This facility employs about 450 professionals dedicated to pioneering tire technology development near Firestone’s original headquarters and manufacturing sites.

June 2022 saw Bridgestone open a $21 million Advanced Tire Production Center on the grounds of the original Firestone Tire and Rubber Company headquarters. This center manufactures all Firestone Firehawk racing tires for the NTT IndyCar Series, marking Akron’s first new tire factory in more than seven decades. In addition, a $6 million test track adjacent to the facility began operations in autumn 2022 to facilitate passenger tire testing and innovation. Since 2012, Bridgestone’s investments in Akron have surpassed $125 million.

Firestone Complete Auto Care

Established in Nashville, Tennessee in 1926, Firestone Complete Auto Care manages over 2,300 independently owned automotive service centers throughout the United States. Serving close to 20 million customers annually as of 2002, it stands as a vital subsidiary within Bridgestone’s portfolio. In early 2022, Bridgestone announced intentions to broaden Firestone’s service offerings to encompass maintenance for hybrid and electric vehicles, reflecting shifting market trends and supporting growth in sustainable automotive services.

Motorsports

Firestone boasts a longstanding legacy in motorsports, having provided tires to every champion of the Indianapolis 500 from 1920 through 1966 and supporting NASCAR events between 1948 and 1974. The brand also competed in Formula One racing from 1950 until 1974 and later re-engaged as a sponsor from 1999 to 2002 via Bridgestone’s collaboration. Confronted with escalating expenses, Firestone opted for a strategic exit from professional racing in 1974, drastically cutting its annual budget for race testing. Nevertheless, the company made a comeback in 1995 by entering the CART Series and has served as the sole tire provider for the IndyCar Series since 2000, maintaining this exclusive partnership through at least the 2030 season. This enduring involvement highlights Firestone’s strong competitive position and influence within the high-performance tire market.

Great American streetcar scandal

In 1950, Firestone, alongside General Motors and Standard Oil, was found guilty of criminal conspiracy related to the Great American streetcar scandal. These corporations acquired and subsequently dismantled numerous U.S. streetcar systems, replacing them with bus services.

Firestone 500 tread separation issue

During the late 1960s, Firestone trailed competitors such as B.F. Goodrich and Michelin in introducing radial tires to the American market. Their initial radial model, the Firestone 500, was manufactured using machinery intended for bias-ply tires, resulting in significant quality challenges.

Throughout the 1970s, the Firestone 500 experienced tread separation during high-speed driving, likely caused by failures in bonding cement that permitted water infiltration and corrosion of steel components. In March 1978, the U.S. National Highway Traffic Safety Administration (NHTSA) initiated an investigation which identified a probable design defect impacting all Firestone 500 tires.

An internal memo from 1973 by Thomas A. Robertson, then Firestone’s development director, admitted that the tire suffered from poor quality and was prone to belt-edge separation. Despite enhanced quality control measures, Firestone was unable to rectify the core defects. A recall involving 400,000 tires from its Decatur, Illinois facility was launched in 1977. Initially, Firestone attributed failures to consumer negligence such as underinflation and inadequate maintenance.

On October 20, 1978, Firestone announced a recall exceeding seven million Firestone 500 tires—the largest tire recall recorded at that time. Congressional investigations linked these defects to nearly 250 fatalities. In May 1980, NHTSA imposed a $500,000 fine on Firestone—the largest penalty levied against a U.S. company under the National Traffic and Motor Vehicle Act—after determining that Firestone had prior knowledge of these issues. Numerous lawsuits were resolved through out-of-court settlements, inflicting substantial harm on Firestone’s sales figures and stock value.

This episode became a prominent case study at leading business institutions like Harvard Business School and Wharton due to its examples of flawed management decisions and inadequate corporate judgment. The prolonged negative media attention and financial liabilities resulted in serious damage to Firestone’s reputation and financial standing.

Rubber plantation in Liberia

In 1926, Firestone launched its Natural Rubber plantation in Harbel, Liberia. Prior to the outbreak of the First Liberian Civil War in 1990, this site held the distinction of being the world’s largest rubber plantation. The initial workforce plan aimed to hire 350,000 individuals, a figure surpassing the country’s available labor pool, which generated significant employment challenges. From 1926 through 1946, Firestone partnered with government authorities to suppress wages and enforce labor compliance, actions frequently overlooked or rationalized as part of economic progress.

Following the assassination of President Samuel Doe in September 1990, rebel forces under Charles Taylor took control of the Harbel plantation. Firestone withdrew its American employees but intended to restart operations by mid-1991. After extended negotiations, a Memorandum of Understanding (MOU) was signed in January 1992 with Taylor’s administration, permitting Firestone to pay taxes in return for safeguarding its property and workforce. Operations resumed in March 1992 but were interrupted again by renewed conflict in October. During this interval, Firestone contributed $2.3 million in taxes to Taylor’s government—funds that reportedly supported military activities. Full-scale production recommenced only after the conclusion of the Second Liberian Civil War in 2003, accompanied by an investment exceeding $100 million to rehabilitate infrastructure.

Firestone’s activities in Liberia have attracted substantial criticism, including a 2005 lawsuit filed under the Alien Tort Claims Act in California by the International Labor Rights Fund, a 2014 investigative piece by ProPublica entitled "Firestone and the Warlord," and a PBS Frontline documentary sharing the same title.

Ford Explorer tire rollover controversy

In 1996, agencies in Arizona identified severe problems with Firestone tires installed on Ford Explorer vehicles. Firestone’s internal investigations attributed these failures primarily to misuse or insufficient tire inflation.

On September 6, 2000, Joan Claybrook, then president of consumer advocacy organization Public Citizen, appeared before the U.S. Senate Appropriations Transportation subcommittee. She drew attention to similarities between the ongoing recall and a previous Firestone tire recall from 1978 that had significantly damaged the company’s reputation and resulted in executive turnover. Claybrook emphasized that unlike the current situation involving Explorers, the older Firestone 500 tires were fitted on passenger cars.

Reports revealed that Ford had directed Firestone to incorporate a nylon ply reinforcement for tires manufactured in Venezuela and had modified suspension systems on Venezuelan Explorers; however, these changes were not applied to U.S.-market vehicles at that time.

A notably elevated failure rate affecting Firestone's Wilderness AT, ATX, and ATX II tire models triggered lawsuits and mandated recalls. In 2001, Bridgestone/Firestone severed its partnership with Ford amid trust issues stemming from allegations that Ford disregarded warnings regarding inherent design flaws in the Explorer. Subsequent recalls were issued in 2006 following additional fatalities and injuries linked to these tires. By 2008, only roughly 90,000 out of more than 2.5 million recalled tires had been withdrawn from circulation. Even as late as 2013, Wilderness AT tires subject to recall were still found available for purchase in Atlanta.

Industry analysts debated whether responsibility lay with Firestone’s tread separation defects or with the Explorer’s susceptibility to rollover after tire failure. A National Highway Traffic Safety Administration (NHTSA) inquiry concluded that Explorers did not exhibit a higher propensity for rollover following tread separation compared to other sport utility vehicles.

Economists Alan Krueger and Alexandre Mas connected the surge in defect rates to a labor dispute at Firestone’s Decatur manufacturing plant between 1994 and 1996. Their research indicated that defect occurrences increased during this period of labor unrest and declined once resolved; other Firestone facilities did not report similar issues during this timeframe.

Television Commercial Jingle

Where the Rubber Meets the Road served as a widely recognized advertising jingle throughout the 1960s and 1970s, frequently featured during broadcasts of sporting events. The piece was sung by Don Rondo.

No matter where wheels roll,

Regardless of the burden,

The trusted name remains Firestone

Where the rubber meets the road.

Additional Brands

Bridgestone/Firestone offers tires under the Fuzion label, an economical range produced in China. The Fuzion collection includes models such as UHP Sport A/S, SUV, and Touring variants.

Presidents

Harvey S. Firestone, 1903–1935
John W. Thomas, 1935–1943
Harvey S. Firestone Jr., 1943–1949
Lee R. Jackson, 1949–1957
Raymond C. Firestone, 1957–1965
Earl B. Hathaway, 1965–1971
Robert D. Thomas, 1971–1972
Richard A. Riley, 1972–1976
Mario A. DiFederico, 1976–1979
John J. Nevin, 1979–1982
Leon R. Brodeur, 1982–1984
John J. Nevin, 1984

Board Chairpersons

Harvey S. Firestone, 1932–1939
John W. Thomas, 1943–1949
Harvey S. Firestone Jr., 1949–1966
Raymond C. Firestone, 1966–1976
Richard A Riley, 1976–1981
John J. Nevin, 1981–

External links

Century of Progress from the Summit Memory Project