firestone tire and rubber company type subsidiary industry manufacturing founded akron ohio united states august 3 1900 ; 116 years ago 1900 08 03 founder harvey firestone headquarters 535 marriott drive p.o. box 140990 nashville tennessee united states area served worldwide key people gary garfield ceo and president eduardo minardi coo products tires revenue us 2.09 billion 2004 number of employees 40 000 parent bridgestone website firestone.com the firestone tire and rubber company is an american tire company founded by harvey samuel firestone in 1900 to supply pneumatic tires for wagons buggies and other forms of wheeled transportation common in the era . firestone soon saw the huge potential for marketing tires for automobiles . the company was a pioneer in the mass production of tires . harvey firestone had a friendship with henry ford . firestone used this relationship to become the original equipment supplier of ford motor company automobiles and was also active in the replacement market . 1 in 1988 the company was sold to the japanese bridgestone corporation . contents 1 history 1.1 early mid 20th century 1.2 restructuring and sale to bridgestone 2 in motorsport 3 corporate troubles 3.1 great american streetcar scandal 3.2 firestone 500 tread separation problem 3.3 liberian rubber plantation 3.4 ford explorer rollover problem 4 television advertisement jingle 5 other brands 6 see also 7 references 8 external links history edit early mid 20th century edit the first firestone store firestone newspaper ad from 1919 explaining the benefits of their cord tire . firestone was originally based in akron ohio also the hometown of its archrival goodyear tire and rubber company and another two mid sized competitors general tire and rubber and bf goodrich . founded on august 3 1900 2 the company initiated operations with 12 employees . 3 together firestone and goodyear were the largest suppliers of automotive tires in north america for over 75 years . in 1906 henry ford chose firestone for model t original equipment tires . 4 in 1918 firestone tire and rubber company of canada was incorporated in hamilton ontario and in 1922 the first canadian made tire rolled off the line on september 15 . 5 during the 20s firestone produced the oldfield tire named for racing driver barney oldfield . in 1926 the company opened one of the world s biggest rubber plantations in liberia west africa spanning more than 1 million acres . 1926 was also the year that the company opened its first firestone complete auto care store firestone complete auto care is a division of firestone that offers automotive maintenance and repair . in 1927 henry ford and tire maven harvey firestone took a trip to los angeles to select locations for their new factories . friends say ford wanted to be near the ocean and picked long beach and suggested firestone go to south gate california . the tiny community southeast of downtown was mostly agriculture at the time and firestone found 40 acres of beanfield to house his new manufacturing plant . architects curlett and beelman created a spectacular four story italianate complex with its own power plant and gorgeous polychrome murals by gladding mcbean depicting the tire and rubber making process . a year after the plant opened in 1928 it doubled in size . by 1954 when they added the corporal guided missile to their offerings the plant was nearly a million square feet . the town grew around firestone they named the main boulevard through town after harvey and los angeles became the number one tire market in the country . by the mid 70 s ford and gm had massive layoffs as firestone and other manufacturers opened new plants in non union locales like wilson north carolina . after much downsizing the end came in 1980 when 1 300 workers were laid off and the plant closed . east los angeles college has proposed a new satellite campus at the site . 6 in 1928 the company built a factory in brentford england a longtime art deco landmark on a major route into the city . this closed in 1979 . in 1936 the company opened a plant in memphis tennessee . with a work force exceeding 3 000 employees the memphis plant was the largest tire manufacturer in the company s worldwide operation . on july 1 1963 the company celebrated the production of 100 million tires in memphis . 7 the plant was closed in 1982 . 8 during world war ii the company was called on by the u.s. government to make artillery shells aluminum kegs for food transport and rubberized military products . firestone ranked 55th among united states corporations in the value of world war ii military production contracts . 9 in the 1940s firestone was given a defense contract to produce plastic helmet liners . while outproduced by westinghouse electric they still made a fair amount for the m1 helmet . corporal missile in 1951 firestone was given the defense contract for the mgm 5 corporal missile . firestone was given a total of us 6 888 796 for the first 200 missiles . this missile was known as the embryo of the army and was a surface to surface guided missile which could deliver a high explosive warhead up to 75 nautical miles 139 km . it was later modified to be able to carry a nuclear payload for use in the event of cold war hostilities in eastern europe . this missile was replaced in 1962 by the mgm 29 sergeant system . 10 in 1961 firestone acquired the dayton tire division from the dayco corporation . restructuring and sale to bridgestone edit firestone operates a chain of repair shops which perform maintenance on cars . a service representative in berkeley heights new jersey . in late 1979 firestone brought in john nevin the ex head of zenith electronics as president to save the hemorrhaging company from total collapse . it was more than a billion dollars in debt at the time and losing 250 million dollars a year . nevin closed nine of the company s seventeen manufacturing plants including six in one day . he moved the company from its ancestral home in akron to chicago . he spun off non tire related businesses including the firestone country club . it was considered a deliberate plan to boost the stock price and it paid off . in 1988 after discussions with pirelli nevin negotiated the sale of the company to the japanese company bridgestone . bridgestone corporation japan was able to buy the company for much less than it had been worth a decade and a half earlier . 11 12 13 the combined bridgestone firestone north american operations are now based in nashville tennessee . in 2008 the companies celebrated a 20 year anniversary of the merger and changed the tire division name to bridgestone americas tire operations llc . in 2012 bridgestone americas opened a 100 million technical center in akron . firestone tires used for the indianapolis 500 race . apart from tires several companies and divisions operate with the firestone brand in its name . these companies include firestone building products llc firestone industrial products llc firestone complete auto care firestone natural rubber company and firestone specialty products . firestone building products and firestone industrial products are headquartered in indianapolis indiana and operate in 23 u.s. states and ten countries with 11 000 employees worldwide . the company reports annual sales of more than 2.5 billion . 14 in 1972 firestone received a ten year import concession by the kenyan government to secure firestone s investment in a domestic tire plant which gave it a virtual monopoly . 15 this included both general price and foreign exchange controls . 16 when the ten year period came to an end in 1979 firestone retaliated by increasing production making entry less attractive . 15 headquarters eventually canceled expansion and failed negotiations lead to no further investments . 16 in motorsport edit the 1911 indianapolis 500 auto race was won by a car running firestone tires . firestone shod cars won all editions of the race from 1920 to 1966 . the company also provided tires to formula one from 1950 to 1974 . as a consequence of the 1973 indianapolis 500 1973 united states grand prix and 1974 austrian grand prix tragedies firestone retired from american open wheel racing and formula one after 1974 . the manufacturer returned in 1995 to the cart series with technical assistance from bridgestone . goodyear retired after 1999 thereby leaving firestone as the single supplier of the indycar series as of 2013 . corporate troubles edit a service manager explains periodic recommended engine part replacements . great american streetcar scandal edit in 1950 firestone along with general motors and standard oil were charged and convicted of criminal conspiracy for their part in the great american streetcar scandal . the scandal included purchasing streetcar systems throughout the united states and dismantling and replacing them with buses . 17 firestone 500 tread separation problem edit radial tires were introduced to the u.s. market by rivals goodrich and michelin in the late 1960s and firestone lacked their own product line . the first radial tire developed and produced by firestone was the ill fated firestone 500 radial . manufacturing of the new tire was performed on equipment designed to manufacture bias ply tires . 18 during the 1970s firestone experienced major problems with the firestone 500 radial . the firestone 500 steel belted radials began to show signs of separation of the tread at high speeds . while the cause was never proved it is believed that the failure of bonding cements used by firestone to hold the tread to the tire carcass may have allowed water to penetrate the tire which in turn may have caused the internal steel wire to corrode . in march 1978 the u.s. national highway traffic safety administration nhtsa announced publicly a formal investigation into defects of the firestone 500 . the nhtsa investigation found that the tread separation problem was most probably a design defect affecting all firestone 500 s. in 1973 only two years after the 500 s debut thomas a. robertson firestone s director of development wrote an internal memo stating we are making an inferior quality radial tire which will subject us to belt edge separation at high mileage . 19 firestone introduced strict quality control measures in an attempt to fix the inherent problems however they were not successful in totally eliminating the basic faults . in 1977 a recall of 400 000 tires produced at the problematic decatur plant was initiated . firestone was considered to be less than cooperative with the nhtsa during the agency s investigation into the firestone 500 . firestone blamed the problems on the consumer stating underinflation and poor maintenance . on october 20 1978 firestone recalled over 7 million firestone 500 tires 20 the largest tire recall to date . congressional hearings into the 500 also took place in 1978 . the tire was found to be defective and the cause of 250 deaths . in may 1980 after finding that they knew the tires were defective the nhtsa fined firestone 500 000 usd which at that time was the largest fine imposed on any u.s. corporation and the largest civil penalty imposed since passage of the 1966 national traffic and motor vehicle act . multiple lawsuits were settled out of court and the constant negative publicity crippled the company s sales and share price . 21 harvard business school and wharton school of the university of pennsylvania taught classes and wrote papers on the issues of misjudgments and poor decision making by the management of firestone . 21 22 after years of bad publicity and millions paid out in compensation to victims firestone was losing vast amounts of money and its name was severely damaged . 23 24 25