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Ford to discontinue Firestone tire recall

Posted 7:32AM on Friday 29th March 2002 ( 23 years ago )
WASHINGTON - Ford Motor Co. will stop giving free replacements for Firestone tires on Sunday, ending an enormously costly recall that tarnished the reputations of two of the most venerable corporate names.

Ford says it has spent about $3 billion to replace 10.6 million Firestone tires, though demand has waned.

"For quite some time now, dealers have had tires in stock and they aren't getting many calls at all," Ford spokesman Ken Zino said.

More than 250 people were killed and hundreds more injured in accidents involving Bridgestone/Firestone Inc. tires. In most cases, the tire lost its tread, causing a Ford Explorer to roll over.

Partners for 95 years, the companies had a public falling out during congressional hearings on the recall. The tire maker said the design of the Explorer was partly responsible for the rollovers. Ford officials denied that and insisted it was solely a "tire problem."

Ford issued Firestone tires as standard equipment on a number of its vehicles, most notably the Explorer, the world's best-selling sport utility vehicle.

Hundreds of wrongful death and personal injuries lawsuits are pending against the companies.

A law passed in response to the accidents allows criminal prosecution and stiffer penalties for executives who hide automotive defects. It also strengthens standards for tires, requires tire pressure monitoring systems in all vehicles and creates a rating system for vehicle rollover risk.

Federal auto safety regulators will begin collecting claims, warranty and other data from manufacturers that could provide an early indicator of defects. Critics said had that information been available, the Firestone problems could have been caught sooner.

"What you have is a better mechanism to deter corporate lawbreaking and to catch the auto companies when they do bad things," said Clarence Ditlow, head of the Center for Auto Safety.

The government began investigating the tires in May 2000 after receiving reports some would fail suddenly. Three months later Bridgestone/Firestone announced a recall of 6.5 million ATX, ATX II and Wilderness AT tires.

Bridgestone/Firestone severed ties with Ford last May. Ford responded immediately by offering to replace 13 million Wilderness AT tires on its vehicles, saying it was concerned about their safety.

While some questioned whether Ford's move was a prudent business decision, analyst Ron Pinelli of Autodata Corp. said the automaker had little choice.

"I'm sure there were a lot of people out there who felt uncomfortable driving their Explorer with Firestone tires on them, and I think it was in Ford's best interest to take care of them," said Pinelli, whose company does research for the auto industry.

Federal investigators eventually found that the design of Wilderness AT and the ATX tires produced before May 1998 could cause higher stress at the edge of the steel belt and lead to a separation. The government closed its investigation last fall after Bridgestone/Firestone agreed to recall 3.5 million more Wilderness ATs.

Regulators denied Bridgestone/Firestone's request for an investigation into the Explorer, saying there was insufficient evidence to warrant it.

The recalls have had a profound impact on Nashville, Tenn.-based Bridgestone/Firestone and Ford.

Sales of the Explorer fell last year, though they have rebounded. Bridgestone/Firestone, which set aside more than $1 billion for the recall, says Firestone sales are rising but remain below pre-recall levels.

Both companies are using their new chief executives in advertising campaigns aimed at improving their images.

John Lampe of Bridgestone/Firestone was featured in the company's "making it right" ads. In promotions for the Explorer, Ford Chairman Bill Ford Jr. muses about camping trips taken by his grandfathers Henry Ford and Harvey Firestone - he is a descendant of both.

In a further indication the companies want to put the recall behind them, they are meeting to discuss a possible reconciliation.

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