Bridgestone, the world’s top tiremaker by market share, announced top management changes on Monday. Eto is leaving his position less than two years after he was appointed and will be replaced by Vice Chairman Masahiro Higashi, who will join as the global COO on July 1.
The tiremaker commented on the timing of the appointment, “We are constantly reviewing our management team and seek to place the right people in the right positions,” reported Nikkei Asian Review.
Why It Matters
The change in executive leadership at Bridgestone comes less than two months after Shuichi Ishibashi took the helm as the company’s CEO, according to the Review.
A spokesperson said that there is “nothing unusual” about Higashi’s promotion, and Tsuya, Eto, and Ishibashi “have already been working together as a team of three up to now.”
The company brought back the position of president in January 2019, having removed the post in 2012, dividing the responsibilities of the position between the CEO and COO.
Bridgestone Chairman Masaaki Tsuya said in 2018 that having a president suits Japanese business culture, and it is “easy to understand” what the role means.
While Eto was appointed to the post of president, his successor may not hold it.
Bridgestone holds 15% of the global tire market and is facing rising price competition from its emerging market rivals.
Bridgestone shares traded 4.06% lower at $30.54 at press time in Tokyo on Tuesday. The company’s OTC shares closed 1.72% higher at $15.69 on Monday.