1. Ford VS. Firestone
MMS Chapter 23

2. The Problem 200 deaths in the US due to cars rolling over
60 deaths in Venezuela
14 deaths in Saudia Arabia
Tread separation a possible cause of the cars torolling over

3. From the Beginning Partners dating back to 1895
First contract established in 1906
Martha Firestone, Harvey’s granddaughter, married William Clay Ford, Henry Ford’s grandson

4. The Blame Game - Firestone
In 2001, Firestone issued a report blaming the Explores design for all of the accidents
Any tread separation would have caused the accident
The tread separation claims occurred ten times more frequently on Ford’s Explorer than on Ford’s Ranger, a pickup

5. The Blame Game - Ford
In 2001, Ford gave the NHTSA a report blaming Firestone for manufacturing flaws
The Explorer had ranked among the top in terms of safety among the 12 SUVs tested for 10 years
For the much of the time the Explorer ranked high in safety, Goodyear tires were used
Rangers are taken on long distance trip where the tires could get too hot

6. Who is at Fault?
Ford recommended a low inflation level for the tires, which causes greater heat build up
Ford chose to use grade C Firestone tires instead of more heat resistant tires such as grade B
Firestone had been linked to tire failure, most manufactured from a plant in Illinois

7. Drivers at Fault? Not being aware of their tires inflation levels
Driving too fast over long periods of time
Not knowing how to handle tire blowouts

8. The Consequences
Ford reported it would triple its initial recall, costing over $2.8 billion
In 2001, Ford Explorer sales decreased dramatically
Ford reported its first loss in operations since 1992

9. Consequences Cont. Firestone’s earnings dropped 80 percent in 2000
A net loss $510 million, largely due to $750 million in legal expenses

10. Rebuilding Firestone’s Image
Option 1 – De-emphasize Firestone and push the Bridgestone name
Option 2 – Get rid of Firestone’s name
Option 3 – Salvage the brand

11. What Went Wrong? New York Times story came out in 1996
Blaming took place instead of solving the problem immediately
Stubborn mind set of top executives