The Firestone Tire Controversy

Ford's Response

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. Analysts also felt that Nasser should have gone to the scene of the crisis and demonstrated his concerns for the individuals involved. However in an interview to Fortune⁶, Nasser commented, "We feel morally and emotionally connected to the people who buy our vehicles.

If I could find a magic wand that would give me 6 ½ mn 15 inch tires that I could personally hand carry to every customer, I'd do it." Analysts also felt that during the crisis, Ford's spokesman should have been its chairman, Bill Ford Jr. (the man with his name on Ford cars and trucks). The chairman addressed the issue only once at a press conference in mid September 2000. However, Ford officials said that Nasser was better qualified to speak in this crisis because of his operational responsibilities and his knowledge of Ford products.

The Controversy Deepens

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. However, Firestone insisted that those tires were safe and that Ford was replacing them to divert attention from safety problems with its Explorer. Nasser said that Ford had no choice but to replace the tires based on its data. He said about 1 mn of the 13 mn tires involved in the latest recall had already been replaced. He also defended the Explorer saying its statistics had shown it was safer than other vehicles. But Firestone blamed the Explorer for the safety problems.

Said a Firestone spokesman, "No one cares more about the safety of the people who travel on our tires more than we do. We are doing our part. We are taking responsibility for our products. We did a massive recall. And now we are doing what's right by asking the tough questions about Ford Explorer."

The Firestone Tire Controversy - Next Page >>>

6] September 18, 2000.

Case Details

Case Code : BECG005
Themes: Ethics in Business
Case Length : 12 Pages
Period : 1991-2002
Organization : Firestone tire company, NHTSA, NUTS
Pub Date : 2002
Teaching Note : Available
Countries : USA
Industry : Automobile Industry

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