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Firestone tire shredding: What was the basis for the crisis?

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What was the basis for the crisis?

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In an 888 word solution, the response clearly explained the problem and then the subsequent actions taken. There is a good analysis of the situation.

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In 2000, tire-manufacturer Bridgestone/Firestone Inc. was faced with a major product recall after discovering the treads on several of its models were separating from the tires. The case involved more than 14.4 million of the Firestone ATX, ATX II and Wilderness AT tires, most of which had been installed on sport utility vehicles. Ford's Explorer models constituted a major portion of the recall. Future investigations would link the faulty tires to 1,400 complaints, 88 deaths and more than 250 injuries. Both companies were forced to take action. The Firestone case was a complicated situation because two companies were involved and both needed to act. "For Ford, this could affect their ability to sell any cars with Firestone tires on them.

But for Firestone, it was almost a matter of survival." Unfortunately for Firestone, Ford got to the consumers first and offered to replace the tires. Firestone, on the other hand, was "at the very least sluggish, if not obdurate, in responding to mounting. In May 2000, the National Highway Traffic Safety Administration (NHTSA) contacted Firestone about the high incidence of tire failure on Ford Explorers fitted with Firestone tires. Ford investigated and found that several models of 15" Firestone tires (ATX, ATX II, and Wilderness AT) had very high failure rates, especially those made at Firestone's Decatur, Illinois plant. This was one of the leading factors to the closing of ...

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Umut Oltulu, MBA
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  • MBA, Texas A&M University-Kingsville
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