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Firestone Tires

Firestone Tires. Who: Firestone Tire When: May 2000, the National Highway Transportation Safety Administration issued a letter to Ford and Firestone requesting information about the high incidence of tire failure on Ford Explorer vehicles

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Firestone Tires

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  1. Firestone Tires Who: Firestone Tire When: May 2000, the National Highway Transportation Safety Administration issued a letter to Ford and Firestone requesting information about the high incidence of tire failure on Ford Explorer vehicles What: 15” Radial ATX, Radial ATX II, and Wilderness AT model tires Why: A high number of tire failures caused many fatal roll-over crashes; cause linked to excessive heat which resulted in the tread peeling off the tires Recall Information National Highway Transportation Safety Administration Details Can be found at: http://usgovinfo.about.com/blfirestone.htm ISE 427 Chris Meador

  2. Management Issues Recognition of problem: • Bridgestone/Firestone, Inc. announced the recall of 3.85 million Radial ATX and Radial ATX II, and 2.7 million Wilderness AT tires on August 9, 2000 Speed of response: • Bridgestone/Firestone did not respond to problem quickly enough due to the quantity of tires that required replacement • Ford authorized their dealers to replace tires with other brands if Firestone brand was not available • Reimbursed customers up to $100 a tire for exchanging tires involved in the recall ISE 427 Chris Meador

  3. Impact of Recall Reputation And Sales • Considered one of the most deadly auto safety crises in America • Customers frustrated with inability of Firestone’s ability to respond • Ford said they would continue to use the tires but would increase the scrutiny of tire quality • Ford knew about the problem of Firestone tires on SUVs in 1998 because of incidents in Venezuela • Firestone suffered a $750 million loss in 2000 Legal Consequences • Ordered to extend Aug 16th deadline for reimbursing consumers who replaced their tires at independent dealerships with a competitor’s tires • Mandatory recalls of tires in 2001 ISE 427 Chris Meador

  4. References • Bridgestone/Firestone Press Release – August 9, 2000 • http://usgovinfo.about.com/blfirestone.htm • Overview of the Recall • http://www.firestone-tire-recall.com/pages/overview.html • Firestone Recall Timeline • http://money.cnn.com/2000/08/30/news/firestone_chronology/ • Firestone Case • http://www.e-businessethics.com/firestone.htm • NHTSA Official Recall Summary • http://www.nhtsa.gov/PR/FirestoneRecall ISE 427 Chris Meador

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