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Published: 23 August 2000
Date of revision:
Source: See Footnotes
By: Robert Lane, staff writer
By the time all is said and done, including settling the many current suits that are pending, the total cost to Ford Motor Company could be in the billions, due to lost revenue as a result of the steep decline in consumer confidence regarding Firestone brand tires on Ford Motor Company products. However, the costs to families are even greater, as many have lost their loved ones due to the tire failures, and you can't put a value on the loss of a human life.
• Christy McKinney, 21 may suffer permanent disability from an August 11th accident in which her Ford Explorer flipped twice after the tread on a Firestone tire separated. Christy is still in the hospital.7
• Gary Hass, a heart surgeon was killed last week when the 1996 Ford Explorer he was riding in rolled three times after a Firestone's tire separated. 5
• Assistant Miami City Attorney Jose Amador Fernandez and his daughter were killed when their 1994 Explorer flipped several times after the left rear Firestone tire separated. His wife, Emma was also riding in the vehicle. She was unable to attend her husband and daughter's funeral because she was in a coma. 8
• A Brevard county, Florida pharmacist lost his wife and his daughter and became a paraplegic after an accident in October 1999 when a Firestone tire separated on his Ford Explorer. 4
Sympathy is a virtue the American public doesn't bestow upon a corporation when families are torn apart, as in this extremely volatile issue involving the failure of these tires that have led to over 60 deaths.
Ford Motor Company wants to ensure that consumers don't consider Ford Motor Company's SUV's to be a threat to their safety, especially since an all new 2002 Explorer has just been announced. But it's hard not to. Ford public affairs Wes Sherwood said "The clear message that we want to get out there is that the new Explorer has completely reengineered tires and the tires are designed specifically for this vehicle." 6 But, they do carry the Firestone Wilderness name on the side.
Ford Motor Company just announced the temporary closure of three plants to free up as many as 70,000 tires. Those also tires have the Firestone Wilderness name embossed on the sidewalls. So why, if consumer confidence is so low in these tires, does Ford insist on supplying the market with the same brand name? Simple economics.
Ford, literally has so much riding on these brand tires, the 2002 Explorer and many other current Ford products would see production halted because there simply isn't the supply to meet the demand if Ford were to drop Firestone and switch to a different tire manufacturer. Therefore, Ford Motor Company has no choice but to spend millions in a futile attempt to raise their consumers' confidence in the Firestone brand.
Ford sales analyst George Pipas added, "Without the strength of the Explorer brand, something like this could be a knockout punch." 6 But, according to the many studies of consumers regarding this Firestone fiasco, the punch has already landed.
An internal Ford Motor Company document obtained by lawyers suing the automaker and Firestone shows that Ford was originally going to use a higher tire pressure in the Firestone tires. However, Ford decided against it because the higher pressures increased the risk that Explorer sport utility vehicles using them would possibly roll over. 3 On the downside, a lower tire pressure generally places more strain on the tire and can often be attributed to early tire failure. When tires fail on a n SUV it's even more dangerous because they tend to roll over more often due to their high center of gravity.
Other benefits from Ford's side of utilizing a lower tire pressure include a softer ride and most importantly, shorter stopping distances of which Ford boasted the new 2002 Explorer as having the shortest stopping distance of all competitors.
The media won't let Ford wiggle out of this Firestone fiasco though. Jac Nasser set precedent when he exchanged Firestone tires on Ford SUV's in almost a dozen countries (Colombia, Venezuela, Ecuador, Saudi Arabia, ect) in the interest of "customer satisfaction" when in reality, it was to prevent the American press from finding out about the failures of both 15" and 16" tires. But what he didn't do is follow the same policy of replacing the tires with North American consumers - and it's going to cost Ford Motor Company billions. Ford has been acting swiftly - but that's probably because 6.5 million suspect tires were fitted almost exclusively on Explorers, which have generated about $13 billion in sales, each of the last two years 1 and those sales generate almost $2 billion in profits each year, according to industry analysts.
Ford spokesman Ken Zino claims that the consumer watch dog groups and lawyers are "looking for more lawsuits; we're looking for solutions." 1 Zeno is correct in stating that many of the consumer interest groups are influenced by trial lawyers, but it's largely because of a companies negligent attitude and business practices. That is what keeps trial lawyers in business in the first place.
Ford's past reluctance to confront consumer issues has spawned class action suits against them concerning: 3.8L V6 head gaskets, 1999 Cobra engine horsepower misrepresentation, numerous Taurus transmission suits, flaming ignition switches, peeling paint and the list continues. While trial lawyers might be making money hand over fist, companies like Ford are feeding them with all of the ammunition they need. It is the trial lawyers who are making roads, highways, vehicles and all products safer for everyone. And it's the trial lawyers who are urging Firestone and Ford to recall all suspect tires regardless of where they were made or the size.
Currently Firestone is only recalling ATX, ATX II and the 235/75R-15 Wilderness tires manufactured in Decatur and Ford is standing by them, even though multiple deaths have already been reported to the U.S. Government due to tires not made in Decatur and regardless of size. The trial lawyers, in essence are doing what you paid Ford Motor Company to provide when you purchased their product and that is providing peace of mind and a safe vehicle.
Lawsuits against Ford are stating in their briefs, "Ford should have known or had reason to know that there was a problem with the tires. . ." - and they had a responsibility to address those concerns with consumers. After all, tire defects are nothing new to Ford Motor Company. Public Citizen's President and former U.S. Government NHTSA chief Joan Claybrook said "There were enough lawsuits that they (Ford) knew there was something seriously wrong." 1
Melbourne attorney Bert Childress explains how big business settles cases to avoid publicity "The settlement is kept confidential. It becomes a closed file. All the public record says is that the case is over." Settlements are great for companies like Ford Motor Company to maintain consumer confidence in their products, but it is horrible for consumers.
"Many deaths could have been avoided, If earlier lawsuits had not been settled and without any type of publicity. The problems have been kept out of the public eye, which is what makes this so tragic," said Childress 4.
Past tire cases settled by Ford Motor Company out of court
Cammack v. Ford and General Tire
Houston, TX
Wrongful death case involving rollover of Bronco II following rear tire tread separation of GT52S tire.
Confidential settlement with General Tire prior to trial. Verdict against Ford for $25,000,000.00.
Tuckier v. Ford and Cooper Tire
Sardis, MS
Wrongful death case following tread separation and subsequent rollover crash of Ford Bronco II equipped with tires made by Cooper Tire.
Confidential settlement with Ford following jury selection. Verdict against Cooper Tire for $3,500,000.00.
Vattakunnel v. Ford and Michelin Tire Corporation
Houston, TX
Wrongful death case involving rollover of Aerostar minivan following a rear tread separation of a Michelin Tire.
Confidential settlement with both defendants following judicial default judgment granted against Michelin for discovery abuse.
Sunderland v. Ford and Bridgestone/Firestone
San Diego, CA
Wrongful death case involving rollover of Ford Bronco II following rear tread separation of Firestone FR480 tire.
Confidential settlement during trial.
Littlefield v. Ford and Bridgestone/Firestone
Marshall, TX
Personal injury case involving rollover of Ford Bronco II following rear tire tread separation of Firestone FR480 tire.
Confidential settlement prior to trial.
Blackaller v. Ford and Bridgestone/Firestone
Riverside, CA
Wrongful death case involving rollover of Ford Explorer following tread separation of Firestone ATX tire.
Confidential settlement prior to trial.
Walsh v. Ford, Firestone and Discount Tire
Houston, TX
Quadraplegia involving rollover of Ford Bronco II following rear tread separation of Firestone FR480 tire.
Confidential settlement prior to trial.
Swank v. Ford and General Tire
Oklahoma City, OK
Wrongful death case involving rollover of Bronco II following rear tread separation of GT52S tire.
Confidential settlement prior to trial.
Thompson v. Ford and General Tire
Houston, TX
Personal injury involving rollover of Bronco II following rear tread separation of GT52S tire.
Confidential settlement prior to trial.
Artz v. Ford and General Tire
Houston, TX
Wrongful death case involving rollover of Bronco II following rear tread separation of GT52S tire.
Confidential settlement prior to trial.
--------------------------------------------------------------------------------
Sources:
1) Ford Has a Lot Riding on Response to Recall. By Terril Yue Jones. LA Times.
2) Firestone Tires Probed in 46 Roadway Deaths. By Edmund Sanders and Terril Yue Jones. LA Times.
3) Ford Chose Tires Now Being Recalled to Reduce Risk of Rollovers. Keith Bradsher. NY Times
4) No Headline Published in The Orlando Sentinel on August 12, 2000
5) By Michael Ellis, Detroit - Reuters
6) More deaths linked to tires. By Mark Truby and Dina ElBoghdady. The Detroit News
7) People Still Dying During Tire Probe. CBS News Correspondent Sharyl Attkisson
8) Assistant Miami City Attorney and child die when Explorer's Firestone tire fails.
Date of revision:
Source: See Footnotes
By: Robert Lane, staff writer
By the time all is said and done, including settling the many current suits that are pending, the total cost to Ford Motor Company could be in the billions, due to lost revenue as a result of the steep decline in consumer confidence regarding Firestone brand tires on Ford Motor Company products. However, the costs to families are even greater, as many have lost their loved ones due to the tire failures, and you can't put a value on the loss of a human life.
• Christy McKinney, 21 may suffer permanent disability from an August 11th accident in which her Ford Explorer flipped twice after the tread on a Firestone tire separated. Christy is still in the hospital.7
• Gary Hass, a heart surgeon was killed last week when the 1996 Ford Explorer he was riding in rolled three times after a Firestone's tire separated. 5
• Assistant Miami City Attorney Jose Amador Fernandez and his daughter were killed when their 1994 Explorer flipped several times after the left rear Firestone tire separated. His wife, Emma was also riding in the vehicle. She was unable to attend her husband and daughter's funeral because she was in a coma. 8
• A Brevard county, Florida pharmacist lost his wife and his daughter and became a paraplegic after an accident in October 1999 when a Firestone tire separated on his Ford Explorer. 4
Sympathy is a virtue the American public doesn't bestow upon a corporation when families are torn apart, as in this extremely volatile issue involving the failure of these tires that have led to over 60 deaths.
Ford Motor Company wants to ensure that consumers don't consider Ford Motor Company's SUV's to be a threat to their safety, especially since an all new 2002 Explorer has just been announced. But it's hard not to. Ford public affairs Wes Sherwood said "The clear message that we want to get out there is that the new Explorer has completely reengineered tires and the tires are designed specifically for this vehicle." 6 But, they do carry the Firestone Wilderness name on the side.
Ford Motor Company just announced the temporary closure of three plants to free up as many as 70,000 tires. Those also tires have the Firestone Wilderness name embossed on the sidewalls. So why, if consumer confidence is so low in these tires, does Ford insist on supplying the market with the same brand name? Simple economics.
Ford, literally has so much riding on these brand tires, the 2002 Explorer and many other current Ford products would see production halted because there simply isn't the supply to meet the demand if Ford were to drop Firestone and switch to a different tire manufacturer. Therefore, Ford Motor Company has no choice but to spend millions in a futile attempt to raise their consumers' confidence in the Firestone brand.
Ford sales analyst George Pipas added, "Without the strength of the Explorer brand, something like this could be a knockout punch." 6 But, according to the many studies of consumers regarding this Firestone fiasco, the punch has already landed.
An internal Ford Motor Company document obtained by lawyers suing the automaker and Firestone shows that Ford was originally going to use a higher tire pressure in the Firestone tires. However, Ford decided against it because the higher pressures increased the risk that Explorer sport utility vehicles using them would possibly roll over. 3 On the downside, a lower tire pressure generally places more strain on the tire and can often be attributed to early tire failure. When tires fail on a n SUV it's even more dangerous because they tend to roll over more often due to their high center of gravity.
Other benefits from Ford's side of utilizing a lower tire pressure include a softer ride and most importantly, shorter stopping distances of which Ford boasted the new 2002 Explorer as having the shortest stopping distance of all competitors.
The media won't let Ford wiggle out of this Firestone fiasco though. Jac Nasser set precedent when he exchanged Firestone tires on Ford SUV's in almost a dozen countries (Colombia, Venezuela, Ecuador, Saudi Arabia, ect) in the interest of "customer satisfaction" when in reality, it was to prevent the American press from finding out about the failures of both 15" and 16" tires. But what he didn't do is follow the same policy of replacing the tires with North American consumers - and it's going to cost Ford Motor Company billions. Ford has been acting swiftly - but that's probably because 6.5 million suspect tires were fitted almost exclusively on Explorers, which have generated about $13 billion in sales, each of the last two years 1 and those sales generate almost $2 billion in profits each year, according to industry analysts.
Ford spokesman Ken Zino claims that the consumer watch dog groups and lawyers are "looking for more lawsuits; we're looking for solutions." 1 Zeno is correct in stating that many of the consumer interest groups are influenced by trial lawyers, but it's largely because of a companies negligent attitude and business practices. That is what keeps trial lawyers in business in the first place.
Ford's past reluctance to confront consumer issues has spawned class action suits against them concerning: 3.8L V6 head gaskets, 1999 Cobra engine horsepower misrepresentation, numerous Taurus transmission suits, flaming ignition switches, peeling paint and the list continues. While trial lawyers might be making money hand over fist, companies like Ford are feeding them with all of the ammunition they need. It is the trial lawyers who are making roads, highways, vehicles and all products safer for everyone. And it's the trial lawyers who are urging Firestone and Ford to recall all suspect tires regardless of where they were made or the size.
Currently Firestone is only recalling ATX, ATX II and the 235/75R-15 Wilderness tires manufactured in Decatur and Ford is standing by them, even though multiple deaths have already been reported to the U.S. Government due to tires not made in Decatur and regardless of size. The trial lawyers, in essence are doing what you paid Ford Motor Company to provide when you purchased their product and that is providing peace of mind and a safe vehicle.
Lawsuits against Ford are stating in their briefs, "Ford should have known or had reason to know that there was a problem with the tires. . ." - and they had a responsibility to address those concerns with consumers. After all, tire defects are nothing new to Ford Motor Company. Public Citizen's President and former U.S. Government NHTSA chief Joan Claybrook said "There were enough lawsuits that they (Ford) knew there was something seriously wrong." 1
Melbourne attorney Bert Childress explains how big business settles cases to avoid publicity "The settlement is kept confidential. It becomes a closed file. All the public record says is that the case is over." Settlements are great for companies like Ford Motor Company to maintain consumer confidence in their products, but it is horrible for consumers.
"Many deaths could have been avoided, If earlier lawsuits had not been settled and without any type of publicity. The problems have been kept out of the public eye, which is what makes this so tragic," said Childress 4.
Past tire cases settled by Ford Motor Company out of court
Cammack v. Ford and General Tire
Houston, TX
Wrongful death case involving rollover of Bronco II following rear tire tread separation of GT52S tire.
Confidential settlement with General Tire prior to trial. Verdict against Ford for $25,000,000.00.
Tuckier v. Ford and Cooper Tire
Sardis, MS
Wrongful death case following tread separation and subsequent rollover crash of Ford Bronco II equipped with tires made by Cooper Tire.
Confidential settlement with Ford following jury selection. Verdict against Cooper Tire for $3,500,000.00.
Vattakunnel v. Ford and Michelin Tire Corporation
Houston, TX
Wrongful death case involving rollover of Aerostar minivan following a rear tread separation of a Michelin Tire.
Confidential settlement with both defendants following judicial default judgment granted against Michelin for discovery abuse.
Sunderland v. Ford and Bridgestone/Firestone
San Diego, CA
Wrongful death case involving rollover of Ford Bronco II following rear tread separation of Firestone FR480 tire.
Confidential settlement during trial.
Littlefield v. Ford and Bridgestone/Firestone
Marshall, TX
Personal injury case involving rollover of Ford Bronco II following rear tire tread separation of Firestone FR480 tire.
Confidential settlement prior to trial.
Blackaller v. Ford and Bridgestone/Firestone
Riverside, CA
Wrongful death case involving rollover of Ford Explorer following tread separation of Firestone ATX tire.
Confidential settlement prior to trial.
Walsh v. Ford, Firestone and Discount Tire
Houston, TX
Quadraplegia involving rollover of Ford Bronco II following rear tread separation of Firestone FR480 tire.
Confidential settlement prior to trial.
Swank v. Ford and General Tire
Oklahoma City, OK
Wrongful death case involving rollover of Bronco II following rear tread separation of GT52S tire.
Confidential settlement prior to trial.
Thompson v. Ford and General Tire
Houston, TX
Personal injury involving rollover of Bronco II following rear tread separation of GT52S tire.
Confidential settlement prior to trial.
Artz v. Ford and General Tire
Houston, TX
Wrongful death case involving rollover of Bronco II following rear tread separation of GT52S tire.
Confidential settlement prior to trial.
--------------------------------------------------------------------------------
Sources:
1) Ford Has a Lot Riding on Response to Recall. By Terril Yue Jones. LA Times.
2) Firestone Tires Probed in 46 Roadway Deaths. By Edmund Sanders and Terril Yue Jones. LA Times.
3) Ford Chose Tires Now Being Recalled to Reduce Risk of Rollovers. Keith Bradsher. NY Times
4) No Headline Published in The Orlando Sentinel on August 12, 2000
5) By Michael Ellis, Detroit - Reuters
6) More deaths linked to tires. By Mark Truby and Dina ElBoghdady. The Detroit News
7) People Still Dying During Tire Probe. CBS News Correspondent Sharyl Attkisson
8) Assistant Miami City Attorney and child die when Explorer's Firestone tire fails.
