Bridgestone/Firestone Creates Holding Firm

Bridgestone/Firestone Inc. reorganized its divisions into a new holding company to cut costs in what some legal experts and plaintiffs’ lawyers say may be intended to protect the tire maker from millions of product-liability claims.

Bridgestone/Firestone Americas Holding Inc. will have four operating subsidiaries and will be headed by Chief Executive John Lampe, the company said. Bridgestone/Firestone said the reorganization is designed to take advantage of better financing rates and to focus more on its tire business.

The holding company, which became effective Dec. 1, is a unit of Japan’s Bridgestone Corp. The new structure streamlines decision-making within the units--three of which will be limited liability companies--and allows each group to maintain different financing rates, Bridgestone/Firestone said.