Preview

Ford and Firestone Case Study

Powerful Essays
Open Document
Open Document
3793 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ford and Firestone Case Study
Summary

Ford motor Company is an American multinational automaker headquartered in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry ford and incorporated on June 16, 1903. the company sells automobiles and commercial vehicles under the Ford brand and luxury cars under the Lincoln brand.
The Firestone Tire and Rubber Company is an American tire company founded by Harvey Samuel Firestone in 1900 to supply pneumatic tires for wagons, buggies, and other forms of wheeled transportation common in the era.
Ford-Firestone case is a unique and an appropriate example of violation of business ethics my two renowned corporation, Ford Motor Company and Firestone Tire Company, each of which was the manufacturer of a different product. This essay talks about as to how the leading car manufacturer Ford, can be held morally accountable for the various accidents and deaths which occurred in US due to vehicle rollovers of its popular SUV known as the For Explorer, However, Ford executives somehow managed to put most of the blame on Firestone by saying that the accidents and deaths occurred mainly due to tire blowouts, and therefore it is a Firestone tire problem and not a vehicle problem. On the other hand firestone claimed that many of the accidents were mainly due to the vehicle's lack of stability and were not due to its tires. Indeed much of the essay is about opposing statements made by the executives of Ford and Firestone. therefore, in order to have a better understanding of the case, it is important to understand the difference between when an item is a product in its own right and when it is component of another product. when thousands of parts cane into a Ford assembly plan, firestone tires were also like those other components that were acquired by Ford. Therefore it can be presumed that the tires were manufactured in a manner to suit the Ford specifications, and they did become a part of the assembly process. At the time of assembly Ford should have

You May Also Find These Documents Helpful

  • Good Essays

    One of the latest recalls involves two companies, which are the Ford Motor Company and Firestone. About 290,000 Firestone tires will be replaced on Ford cars; this action was taken after several accidents happened. Some of the accidents were associated with the death of the drivers. Firestone and Ford Motor’s reputation and public image were affected after this recall (Hakim, 2004).…

    • 391 Words
    • 2 Pages
    Good Essays
  • Good Essays

    In 1903 Ford Motor Company became incorporated with $28,000. The first car sold was a month after the incorporation. The company continued to build…

    • 1512 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    F150

    • 2530 Words
    • 11 Pages

    Ford motor company is home base in Dearborn, Michigan, the company was founded Henry Ford and the first model car was “A” built in 1903. Today Ford employs 198 thousand employees in 90 automobile plants expanding across six continents. The company manufacture five automotive brands; Ford, Lincoln, Mercury and Volvo. Ford is management is made up of a board of directors, with William Clay Ford, Jr leading the way as Executive Chairman and Chairman of the Board and Alan R. Mulally President and CEO; in 2009 Fords total sales and revenues came to over 118 millions dollars. Ford must compete with General Motor, Toyota and Chrysler for customer business.…

    • 2530 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Although there is some shared blame, Ford should carry most of the weight for these deaths and injuries. It was Ford’s responsibility to select a tire that would be durable enough to withstand the purpose of the vehicle. Ford chose to select a Grade C Firestone tire that, in most cases, could not withstand the multiple factors that affected the tire due to the vehicle’s use and environment. As the case stated, the Ford Explorer was widely used as a sports utility and travel vehicle, usually carrying a maximum…

    • 974 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    The Ford Motor Company is an American multinational automaker that was incorporated on June 16, 1903 by Henry Ford. In today’s world Ford is the second largest automaker in the U.S. and the fifth-largest in the world based on annual vehicle sales in 2010. Henry Ford became famous for his methods of large scale manufacturing, management and the use of the assembly lines in his factories. Another very important event in the history of Ford Motor Company, and also a very important case in legal terms, was Dodge v. Ford Motor Company, 170 N.W. 668, Michigan Supreme Court 1919. This case was very important to the legal system because it reinforced the idea that corporations are accountable to making a profit for the stockholders.…

    • 716 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Ford vs. Gm

    • 4858 Words
    • 20 Pages

    The Ford Automotive Company began as a vision of its founder Henry Ford. Henry Ford was born in 1863 on a farm near Dearborn, Michigan. In 1890 Ford’s hobby in the engineering field became a career as he began his employment at Detroit Edison Company. In 1892, Ford built his first gasoline buggy in which he sold in 1896 to help fund the construction of a new automobile. Three years later in 1899, Ford was forced to quit despite his promotion to chief engineer because of his hobby outside of work. The loss of his career at Detroit Edison Company did not slow Ford down. Soon after that he started Detroit Automobile Company with the help of some private investors. Shortly after, he withdrew from that business association because of accounting and prices of the cars produced by the company. On June 16, 1903 Henry Ford opened a converted wagon factory on Mack Avenue in Detroit which became known as the Ford Motor Company. After the company was formed it went through ups and down like any other company. The Ford Motor Company fought with the Licensed Association of Automobile Manufacturers over rights for a patent held on road locomotives with internal combustion engines when the company began. The Model T was the beginning mark of Ford’s success being one of its most popular cars in 1908. Ford was also involved in the war effort in World War I. The Ford Motor Company placed its resource at the disposal of the government providing large quantities of automobiles, trucks, ambulances, Liberty airplane motors, Whippet tanks, and Eagle submarine chasers. The Ford Company later expanded into other countries such as England, German, and Russia. The Ford Motor Company has been through many changes in time that include two World Wars, the Great Depression and more.…

    • 4858 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    The Ford Motor Company was established by Henry Ford in Dearborn, Michigan, in 1903 (Bellis, 2012). With the use of the first assembly line, Ford became known for the development of mass production. Henry Ford gained notoriety by shortening the workday of his employees, paying his workers high wages and believing unionization was not necessary (Bellis, 2012). On June 20th 1941 the Ford Motor Company signed its first contract with the United Automobile Workers of America and Congress of Industrial Organizations (UAW – CIO) ("Ford Signs First Contract With Autoworkers ' Union," 2012). The Ford Motor company employs about 164,000 people and recorded revenues of $136,264 million during the financial year ending December 2011 (Research & Markets, 2012.)…

    • 1052 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Were both companies responsible for what happened? Were government regulations administered through the National Highway Traffic Safety…

    • 5382 Words
    • 22 Pages
    Powerful Essays
  • Powerful Essays

    Firestone and ford: the tire tread separation strategy (case for discusiion for bba iii b on Tuesday 21 May 2013)…

    • 4623 Words
    • 19 Pages
    Powerful Essays
  • Good Essays

    This recall caused 270 complaints, 80 crashes and 46 deaths. As this incident continued, it raised the rate of endangerment to over 100 deaths and 500 injuries involving such incidents, making this one of the most serious cases of product failure in US history. When the public got involved with the case, it caused more issues with the Firestone-equipped Ford Explorers. Ford and Firestone responded by putting all the blame from each other’s companies. The CEO of the Firestone company claimed that the accidents could be attributed to driver error and poor tire maintenance by consumers. Throughout this issue of the Ford-Firestone tire crisis, their defense involved not believing that the tires were defective and being held accountable for accidents to people got into because of this defective product. Even when Firestone’s own investigation found evidence of material and design the tires had many defects to it. Ford’s CEO blamed the problem of the recall of Firestone. The CEO clearly stated that the accidents had nothing to do with the auto-maker and claimed that the Firestone company is liable because of the tire not Ford because it manufactures the vehicle not the…

    • 606 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Ford Motor Company was established in 1903 by Henry Ford (www.history.com, 1996-2013). This company has been a leader in the automobile manufacturing industry for over 100 years. The first vehicle ever sold by Ford Motor Co. was the Model A passenger vehicle. It was a two cylinder, eight horsepower, gas driven vehicle that could carry up to four passengers. Five years later (1908) Mr. Ford introduced the Model T passenger vehicle which was intended to be an affordable vehicle for everyone. Since then Ford Motor Co. has been an innovative genius by developing some of the best technology related to assembly lines and universal…

    • 711 Words
    • 3 Pages
    Better Essays
  • Good Essays

    Firestone and Ford should have worked together in this case and been more proactive in solving the problem rather than making allegations toward each other and the consumers. After parting ways the companies did their best to make right but the damage had been done as they both failed each other and most importantly they failed the consumers. This issue was slow to develop and boil over but once it went public the efforts by the companies to maintain profitability by keeping these cases quiet for so long would in fact be a means to their downfall and cause permanent…

    • 569 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Bridgestone/Firestone, Inc., based in Nashville, Tennessee, has been in the business of making tires since 1900, when Harvey Firestone founded the Firestone Tire & Rubber Company in Akron, Ohio. Firestone was acquired by Bridgestone USA, Inc., a subsidiary of Tokyo-based Bridgestone Corporation, in 1990 for $2.6 billion. Today, the company markets 8,000 different types and sizes of tires, and a host of other products. The company has also enjoyed a long and prosperous relationship with Ford Motor Company which began in 1906 when Henry Ford purchased 2,000 sets of tires from Harvey Firestone. Despite emerging as a leader in the tire industry, Bridgestone/Firestone has faced several crises related to its tire¡¦s safety. In 1978, Firestone recalled 14.5 million tires¡Xthe largest tire recall at the time¡Xafter excess application of the adhesives binding the rubber and steel resulted in 500 tread separations and blowouts. The company also paid a $500,000 fine for concealing safety problems. However, this incident paled in comparison to problems the company faced in the late 1990s, which quickly grew to affect its relationship with Ford as well.…

    • 2741 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    Firetone Collapse

    • 903 Words
    • 4 Pages

    In May 2000, the National Highway Traffic Safety Administration (NHTSA) in the United States issued a letter to the Ford Motor Co. and Firestone Inc. asking for information about the high incidence of tire failures on the Ford Explorer Sport Utility Vehicles (SUVs). During July, Ford analyzed the data on tire failures. The analysis revealed that Firestone Radial 15 inch ATX and ATX II tires produced in North America and Wilderness AT tires produced at Decatur, Illinois Plant had very high failure rates with the treads peeling off. When the tires failed, the vehicle often rolled over and killed the occupants.…

    • 903 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Firestone

    • 1132 Words
    • 5 Pages

    Firestone produced tires that had poor performance and durability, especially at higher temperatures. To levy this lack of performance, they insisted on using the tires at a higher pressure to increase the lifespan and reduce the heat generated by these tires which ultimately was the cause of the defects. Once it was discovered that these tires were the cause of the accidents because of the separating treads due to high temps and low pressure, Firestone then attached Ford and pointed the finger at their…

    • 1132 Words
    • 5 Pages
    Good Essays

Related Topics