Ford and Firestone
FORD AND FIRESTONE CASE STUDY
1. SUMMARY
This case involves Ford and the Japanese tire manufacturer, Bridgestone/Firestone. The Ford Explorers which were prone to rolling over, came equipped with Firestone defected tires. The tire seemed to have a defect that caused the tread to separate from the whole of the tire and cause the vehicle to flip. Although Firestone knew about such defects, they continued to produce despite knowing the deadly consequences that lay behind their actions. The Explorer also had a bad reputation of rolling over and Ford knew it. As a result, fatal accidents occurred from these two combinations. Since this was a very serious safety issue, Ford and Firestone were ordering the recall of problem tires in Saudi Arabia, Venezuela and Asia but not in the United States. So, did the company act ethically in resolving this crisis? No, the companies failed to fix the problem in the United States. According to NHTSA, the tires have caused many deaths and injuries in the United States. In fact, these accidents would have not occurred if both companies have solved the problem immediately. Thus, despite the obvious safety issues, there were also fundamental ethical issues. 2. STATEMENT OF THE PROBLEM
In May 2000, the U.S. National Highway Traffic Safety Administration (NHTSA) contacted Ford and Firestone about the high incidence of tire failure on Ford Explorers, Mercury Mountaineers, andMazda Navajos fitted with Firestone tires. Ford investigated and found that several models of 15-inch 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 the Decatur plant
Joan Claybrook, who was the president of the public advocacy group Public Citizen and previously an Administrator of the NHTSA, stated before the Transportation Subcommittee United States Senate Committee on Appropriations on September 6,
1. SUMMARY
This case involves Ford and the Japanese tire manufacturer, Bridgestone/Firestone. The Ford Explorers which were prone to rolling over, came equipped with Firestone defected tires. The tire seemed to have a defect that caused the tread to separate from the whole of the tire and cause the vehicle to flip. Although Firestone knew about such defects, they continued to produce despite knowing the deadly consequences that lay behind their actions. The Explorer also had a bad reputation of rolling over and Ford knew it. As a result, fatal accidents occurred from these two combinations. Since this was a very serious safety issue, Ford and Firestone were ordering the recall of problem tires in Saudi Arabia, Venezuela and Asia but not in the United States. So, did the company act ethically in resolving this crisis? No, the companies failed to fix the problem in the United States. According to NHTSA, the tires have caused many deaths and injuries in the United States. In fact, these accidents would have not occurred if both companies have solved the problem immediately. Thus, despite the obvious safety issues, there were also fundamental ethical issues. 2. STATEMENT OF THE PROBLEM
In May 2000, the U.S. National Highway Traffic Safety Administration (NHTSA) contacted Ford and Firestone about the high incidence of tire failure on Ford Explorers, Mercury Mountaineers, andMazda Navajos fitted with Firestone tires. Ford investigated and found that several models of 15-inch 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 the Decatur plant
Joan Claybrook, who was the president of the public advocacy group Public Citizen and previously an Administrator of the NHTSA, stated before the Transportation Subcommittee United States Senate Committee on Appropriations on September 6,