The Firestone Tire Controversy

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Excerpts

Ford and Firestone seemed to have known about the flaws in the tires for almost a year prior to the recall but it wasn't until NHTSA launched a preliminary investigation that Firestone announced a voluntary recall... Ford and Firestone seemed to have known about the flaws in the tires for almost a year prior to the recall but it wasn't until NHTSA launched a preliminary investigation that Firestone announced a voluntary recall. Questions were raised about how Ford and Firestone responded to the first evidence of tire problems...

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Ever since Firestone announced its voluntary recall of Firestone tires in August 2000, its Chief Executive, Yoichiro Kaizaki (Kaizaki) did not make a public appearance. In September 2000, Business Week wrote that Firestone's behavior spoke volumes about the huge gap that existed between the US and the Japanese management...

Analysts felt that Ford's response to the crisis was also not very positive. They chided Ford CEO, Jacques Nasser (Nasser) for appearing too stiff on Television as a spokesman for Ford...

In mid 2001, a committee was formed consisting of the members of the US House Energy and Commerce to look into the problem of tread separation of Firestone tires. During the same time, Ford announced plans to replace about 13 mn Firestone tires used on its vehicles...

In August 2001, out of the hundreds of lawsuits filed by the victims and their families, only one made it to the trial. This case involved a South Texas family injured in a crash in a Ford Explorer (Refer Exhibit VIII). The trial came more than a year after NHTSA said that it was looking into the problem...

In mid 2001, Firestone announced that it would shut down one of its US plants, which could be its Decatur, Illinois, plant by no later than December 31, 2001. This would eliminate some 1, 500 jobs. The Decatur Illinois plant produced many of the 6.5 mn Firestone tires recalled in August 2000...

Exhibit I: Deaths and Injuries Resulting from Firestone Tire Failures in Us (As on February 6, 2001)
Exhibit II: NHTSA Firestone Incident Database
Exhibit III: NHTSA Firestone Incident Database Total Crashes
Exhibit IV: NHTSA Firestone Incident Database Fatality Crashes
Exhibit V: NHTSA Firestone Incident Database Injury Crashes
Exhibit V: NHTSA Firestone Incident Database Crashes with Rollover
Exhibit VII: Chronology of Events in Ford/Firestone Controversy
Exhibit VIII: The Trial