Firestone to Invest in Okc Plant Future/aucott:plant to Remain Open If Competitive

By Nichols, Max | THE JOURNAL RECORD, April 16, 1987 | Go to article overview

Firestone to Invest in Okc Plant Future/aucott:plant to Remain Open If Competitive


Nichols, Max, THE JOURNAL RECORD


With an investment of more than $14 million this year, Firestone Tire & Rubber Co. will keep its Oklahoma City plant open as long as the products can compete effectively, Firestone Executive Vice President George W. Aucott said Wednesday.

Firestone's pledge in its agreement with the United Rubber Workers union to keep the plant open at least until the end of 1988 was not intended to turn that date into a "climax" that would set up new negotiations, Aucott said.

"We have faith that, with the changes being implemented as part of our recent agreements here, Oklahoma City tires will be important to us for many years to come," he said. "The 1988 date in the labor agreement was purely an arbitrary one.

"There is also concern that the entire process we have gone through here since October will be repeated in December 1988. That definitely is not our intention."

Plant "changes," following a $20 million-a-year savings package worked out with the rubber workers and others, include:

- The $14 million investment, which includes $7 million for general maintenance of business projects throughout the plant and a previously-announced $7.4 million for new equipment. The new equipment, which is part of the agreement, is expected to save about $2 million a year.

- A proposed $75 million cogeneration plant to produce electricity and steam, saving about $2 million, or 10 percent of the agreement.

"That is a key factor in the long range future of the plant," Aucott said, "because the cost of energy is so important in the production of tires."

- The possibility of moving production of about 3,000 to 3,500 "temporary spare tires" a day to Oklahoma City if a plant is closed in Des Moines, Iowa, where workers have refused a concessions package.

"If this can be worked out within the same costs, it would improve the return on tires from this plant," he said. "The return can then be used for further investment in the plant.

"The bottom line is the return."

The Oklahoma City plant produces low-priced replacement tires for passenger cars and light trucks, with the primary competition in price. The plant had been "losing money" or had been "only marginally profitable" in recent years, he said.

The $20 million package amounts to about a savings of about $3 per tire, said Plant Manager Barry Kadechuk.

Aucott applauded the "community effort" to keep the plant open in Oklahoma City. The joint effort of the United Rubber Workers union, plant management, maintenance and janitorial workers, Oklahoma City leaders and vendors to keep a plant open is rare, he said.

"When I told Firestone Chairman John Nevin about the effort," said Aucott after his address, "he said: `You can't do it.' In most cases, a plant is closed, and then a white knight is needed to come in and operate the plant."

In his address to the chamber, he said:

"Never, and I emphasize `never,' has a community become so actively involved in helping us accomplish our objectives."

While unconditional guarantees "can not" be offered to keep a plant in operation for extended periods in "these days of uncertainty about markets in automotive-related industries," said Aucott, the $14 million investment is "evidence" of Firestone's commitment.

"We would not be investing this major amount of our shareholders' money in this operation," he said, "if we were not confident that the Oklahoma City plant has a future."

The new equipment will include a multi-million dollar creel calender system.

"This will allow the plant to calender its own steelcord materials," said Aucott, "thus reducing inventory investment and shipping costs. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Firestone to Invest in Okc Plant Future/aucott:plant to Remain Open If Competitive
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.