Tara D. Griffin
November 2, 2014
Ford Explorers with Firestone Wheels: Ill-Handling a Killer Scenario
A product defect that leads to customer injuries and deaths through producer carelessness constitutes the most severe crisis that any company can deal with. In addition to destroying manufacturer reputation, ethical and sociable responsibility violations are involved, after which legal and regulatory consequences. Managing such a crisis becomes far worse, however , when the manufacturer understood about the difficulties and obscured or refused them. This case is unique because two producers were causante, but each blamed the other. Therefore, Firestone and Ford were savaged by press, community opinion, the federal government, and a number of salivating legal professionals. Massive tire recalls damaged the bottom line as well as endangered the viability of Bridge stone/ Firestone; sales of the Ford Explorer, the world's best selling sport-utility motor vehicle (SUV), plummeted 22 percent in Apr 2001 from the year just before, even as household sales of SUVs general climbed 9 percent. The Scenario
Firestone tires mounted on Ford People were related to more than two hundred deaths coming from rollovers in the US, as well as much more than 60 in Venezuela and a reported 14 in Saudi Arabia and neighboring countries. A broadly publicized court action took place in Texas in the summer of 2001. It was anticipated that the jury would decide who was most to blame for the deaths and injuries coming from Explorers outfitted with Firestone tires. Honda settled its portion of the suit before the trial began while Firestone became the sole defendant. Kia and Firestone had a long, intimate background. In 1895, Harvey Firestone sold tires to Henry Ford to get his 1st automobile. Henry and Harvey became business confederates and best friends. The first intimation of trouble came in 1999, after 13 fatalities took place; Ford began replacing the tires of Explorers. There have been many deaths due to the warm weather and under-inflation of the wheels. In...