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August 14, 2000
Job 1 at Ford: Ease fears about Explorer
Owners are scared, and stakes are huge
MARY CONNELLY
Automotive News
Last week, dealer Jerry Reynolds fielded a frantic call from a customer who refused to set out on vacation in the family’s 2-month-old Ford Explorer equipped with Firestone tires.
By Monday afternoon, the customer was on the road, after Reynolds put new Goodyear tires on the Explorer.
Ford Motor Co. is wrestling with a nightmare. The company’s best-selling sport-utility, the Ford Explorer, is being tarred by potentially dangerous Firestone tires. The company’s dealers must soothe rattled nerves of frightened customers. And Ford must preserve the good name of the Explorer.
"Every customer we talk to says the same thing,’’ said Reynolds, owner of Prestige Ford in Garland, Texas. "They say, ‘What are you going to do to make me feel better about driving this car?’ They are not looking to Firestone or Ford. They are looking to the dealer. They are saying, ‘I am scared to drive my vehicle’.’’
SCARED OWNERS
Ford dealers are scrambling to find replacement tires for current owners. In some cases, Explorer owners are so fearful that dealers are replacing Firestone tires not subject to the recall.
On the showroom floor, salespeople repeatedly are answering tire questions from prospective customers. Customers still are willing to purchase a new Ford Explorer, but tires now are a factor before the deal is closed.
Indeed, dealers are reporting that even to sell other Ford vehicles, including the Ford Ranger and the Ford Expedition, they must replace the Firestone tires with another tire brand to make the sale.
"We had an Expedition buyer. We had to get another brand of tires just because the vehicle has Firestone tires,’’ dealer Jeff Kemp said. The tires on the Expedition are not being recalled, he said.
"We went to a local tire shop. They exchanged the tires for a reasonable price. We spent $300 replacing the tires, but it is better than not making the deal.’’ Kemp owns Kemp Ford in Thousand Oaks, Calif.
Similarly, Reynolds had to pull Firestone tires not subject to the recall from a Ranger. "The customer said, ‘I will buy the truck, but I want a different set of tires on it.’ We put on some Goodyears,’’ Reynolds said.
Kemp and Reynolds sell in two of the four hot-weather states where the majority of Firestone tread-separation incidents are clustered. The first phase of Firestone’s voluntary recall is under way in California, Texas, Arizona and Florida.
"We are deluged with calls,’’ Kemp said. "The biggest problem is the hysteria surrounding the name Firestone.’’
KEEPING LOYAL BUYERS
Keeping Explorer owners loyal — all 3.6 million of them — is a huge issue for Ford. Seventy percent of Explorer owners return to buy another Ford Motor Co. vehicle, according to company statistics covering 1995 to 1999. Of that 70 percent, 44 percent purchase another Explorer.
Indeed, in redesigning the Explorer for the first time in 10 years, the company said a primary goal for the 2002 model was to create an evolutionary vehicle that would appeal to existing owners.
The redesigned 2002 Explorer is scheduled to get Firestone Wilderness tires, a 16-inch tire model not being recalled, but a Firestone nevertheless.
Ford’s contract with Firestone to supply the 2002 Explorer is not under review, said Ken Zino, Ford spokesman. "They are different tires and a different plant,’’ he said.
Ford Motor built 507,091 Explorers and 51,628 Mercury Mountaineers in 1999. Each unit generated an estimated $4,000 in pre-tax profit, said David Bradley, an auto analyst with J.P. Morgan Securities Inc.
Using that figure, Explorers and Mountaineers accounted for pre-tax profit of $2.2 billion last year.
Ford is authorizing dealers to replace Firestone tires with other brands, including General Tire, Goodyear, Michelin, Bridgestone and Uniroyal. Ford is reimbursing dealers 1.2 hours in labor time to replace four tires and the spare.
FORD TIRE RETAILERS
Currently, 2,900 Ford and Mercury dealerships are authorized Firestone retailers, according to Ford. In early 1999, Ford began a campaign to turn its dealers into tire retailers. New-car dealers have tended to avoid tire sales, arguing that tires are cumbersome to stock and that customers prefer discount chains. Now Ford’s push into the tire business is placing its dealers at the front of the recall campaign. Firestone is recalling 6.5 million tires in a campaign that is expected to require at least a year to complete.
"Our job now is to find tires for my customers,’’ said Charles Hunter, owner of Orange Ford in Orange, Texas. "My parts manager is working on it. The bottom line is we are the ones who talk to the customer. We are Ford in this community.’’
Job 1 at Ford: Ease fears about Explorer
Owners are scared, and stakes are huge
MARY CONNELLY
Automotive News
Last week, dealer Jerry Reynolds fielded a frantic call from a customer who refused to set out on vacation in the family’s 2-month-old Ford Explorer equipped with Firestone tires.
By Monday afternoon, the customer was on the road, after Reynolds put new Goodyear tires on the Explorer.
Ford Motor Co. is wrestling with a nightmare. The company’s best-selling sport-utility, the Ford Explorer, is being tarred by potentially dangerous Firestone tires. The company’s dealers must soothe rattled nerves of frightened customers. And Ford must preserve the good name of the Explorer.
"Every customer we talk to says the same thing,’’ said Reynolds, owner of Prestige Ford in Garland, Texas. "They say, ‘What are you going to do to make me feel better about driving this car?’ They are not looking to Firestone or Ford. They are looking to the dealer. They are saying, ‘I am scared to drive my vehicle’.’’
SCARED OWNERS
Ford dealers are scrambling to find replacement tires for current owners. In some cases, Explorer owners are so fearful that dealers are replacing Firestone tires not subject to the recall.
On the showroom floor, salespeople repeatedly are answering tire questions from prospective customers. Customers still are willing to purchase a new Ford Explorer, but tires now are a factor before the deal is closed.
Indeed, dealers are reporting that even to sell other Ford vehicles, including the Ford Ranger and the Ford Expedition, they must replace the Firestone tires with another tire brand to make the sale.
"We had an Expedition buyer. We had to get another brand of tires just because the vehicle has Firestone tires,’’ dealer Jeff Kemp said. The tires on the Expedition are not being recalled, he said.
"We went to a local tire shop. They exchanged the tires for a reasonable price. We spent $300 replacing the tires, but it is better than not making the deal.’’ Kemp owns Kemp Ford in Thousand Oaks, Calif.
Similarly, Reynolds had to pull Firestone tires not subject to the recall from a Ranger. "The customer said, ‘I will buy the truck, but I want a different set of tires on it.’ We put on some Goodyears,’’ Reynolds said.
Kemp and Reynolds sell in two of the four hot-weather states where the majority of Firestone tread-separation incidents are clustered. The first phase of Firestone’s voluntary recall is under way in California, Texas, Arizona and Florida.
"We are deluged with calls,’’ Kemp said. "The biggest problem is the hysteria surrounding the name Firestone.’’
KEEPING LOYAL BUYERS
Keeping Explorer owners loyal — all 3.6 million of them — is a huge issue for Ford. Seventy percent of Explorer owners return to buy another Ford Motor Co. vehicle, according to company statistics covering 1995 to 1999. Of that 70 percent, 44 percent purchase another Explorer.
Indeed, in redesigning the Explorer for the first time in 10 years, the company said a primary goal for the 2002 model was to create an evolutionary vehicle that would appeal to existing owners.
The redesigned 2002 Explorer is scheduled to get Firestone Wilderness tires, a 16-inch tire model not being recalled, but a Firestone nevertheless.
Ford’s contract with Firestone to supply the 2002 Explorer is not under review, said Ken Zino, Ford spokesman. "They are different tires and a different plant,’’ he said.
Ford Motor built 507,091 Explorers and 51,628 Mercury Mountaineers in 1999. Each unit generated an estimated $4,000 in pre-tax profit, said David Bradley, an auto analyst with J.P. Morgan Securities Inc.
Using that figure, Explorers and Mountaineers accounted for pre-tax profit of $2.2 billion last year.
Ford is authorizing dealers to replace Firestone tires with other brands, including General Tire, Goodyear, Michelin, Bridgestone and Uniroyal. Ford is reimbursing dealers 1.2 hours in labor time to replace four tires and the spare.
FORD TIRE RETAILERS
Currently, 2,900 Ford and Mercury dealerships are authorized Firestone retailers, according to Ford. In early 1999, Ford began a campaign to turn its dealers into tire retailers. New-car dealers have tended to avoid tire sales, arguing that tires are cumbersome to stock and that customers prefer discount chains. Now Ford’s push into the tire business is placing its dealers at the front of the recall campaign. Firestone is recalling 6.5 million tires in a campaign that is expected to require at least a year to complete.
"Our job now is to find tires for my customers,’’ said Charles Hunter, owner of Orange Ford in Orange, Texas. "My parts manager is working on it. The bottom line is we are the ones who talk to the customer. We are Ford in this community.’’