Firestone Ford Tire Recall Analysis.pdf

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Management (MGS)
Course Code
Peter P Constantinou

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Firestone Ford Tire Recall  Reported incidences of tire failure on Ford explorers with Firestone tires  accidents, deaths o Tread separation  Firestone had tire recalls in the past  As early as 1992, there were signs that something was wrong  no recalls or investigation o Warranty claims  Ford asked Firestone to investigate in 1999  Firestone reported no problems  Around 1999 , Ford recalled Firestone tires in Saudi Arabia, Venezuela, other foreign countries – before tire recalls in North America  Delay in recall in North America was due to fear of legal consequences + costs  Problem with tires due to inexperienced workers + lack of inspection  Nylon cap or safety layer between steel belts and tread could have prevented tread separation – wasn’t used because of cost (cost $1 per tire)  Ethical Dilemma: Whether or not it was ethical for Ford/Firestone to delay investigating and recalling
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