The Ford/Firestone Debacle

Ford Explorer o in the 1990s became the most popular SUV in the U.S. o overall a safe vehicle for its drivers & passengers fatality rate 27% lower than passenger cars 17% lower than other SUVs o SUVs are generally safer for those riding in them due to their greater mass o SUVs were more profitable for Ford profit on sedans = $1000 profit on Explorers = $8000 Rollover proneness o SUVs generally are built higher off the ground than sedans giving them higher centers of gravity o the higher center of gravity makes them more tippy: the Explorer's twin IBeam suspension gives it an even higher center of gravity o Consumers Union tests Explorers proved more tip over prone than other SUVs o More expensive fixes proposed by Ford engineers rejected replacing the Twin I-Beam suspension lowering the engine mounting the wheels 2" further apart o Less expensive remedies enacted stiffen the springs shorten the suspension lower the tire pressure from 30-35 p.s.i. as recommended by Firestone, the tire manufacturer to 26 p.s.i. Firestone o had supplied tires for Ford since 1896 o in 1975 began supplying steel belted radials o by 1978 failures of Firestone's steel belted radials were involved hundreds of accidents resulting in many injuries and 34 deaths o Firestone argued that these failures were not due to any defect but caused by under inflation: nevertheless it recalled 14.5 million tires at a cost of $160 million o in 1988 Firestone was purchased by the Japanese tire manufacturer Bridgestone o July 1994 strike by 4000 workers strike dragged on for 2.5 years Firestone hired 900 replacement workers to permanently replace striking workers at the Decatur plant where a large percentage of Explorer tires were made, a move the union claimed would put untrained and unskilled workers on the assembly line Problems with Explorer and its ATX and Wilderness AT tires begin to emerge

in 1993 five lawsuits charges that the tires were prone to catastrophic failures that were causing rollovers on Explorers o Firestone data "indicated that the tread sometimes separated from the tires and peeled off" particularly under hot conditions o by 1998 Ford had replaced all its Firestone tires on Explorers in the Middle East with Goodyear tires after rollover accidents caused by tire separation. resulting in at least 14 deaths across the region at Firestone's insistence Ford called this a "consumer satisfaction program" not a recall Firestone disclaimed responsibility, once again claiming the failures were caused by under inflation o in May 2000, the NHTSA notified Ford and Firestone that it was launching an investigation of the tires in question after receiving 193 complaints that the rubber came off the tire casing resulting in 21 fatalities Ford & Firestone's own investigation revealed a steady upward trend in separations over the past several years: the rate of failure for tires made at the Decatur plant was 3 to 6 times greater than for tires manufactured at other plants Denouement o August 2000: Ford & Firestone recall 6.5 million tires o Ford's stock lost 15% and Bridgestone's 50% o Firestone announced plans to close the Decatur plant o May 2001: Ford announces that it will no longer use Firestone tires on Explorers recalled another 13 million Wilderness AT tires despite Firestone's continuing claims that the tires weren't defective pledged to make design modifications to the 2002 Explorer to reduce rollover tendencies o Estimated total costs of recalls to Ford: $3 billion to Firestone: $750 million o By the end of 2001 NHTSA had counted 175 deaths and 500 injuries related to Firestone tire failures on Ford Explorers o According to the NHTSA design flaws or shoddy manufacturing caused Firestone radials to be more prone to tread separation. o Firestone's own internal study showed the low inflation pressure of 26 p.s.i. increased the internal tire temperature and this contributed to the tread separation.

Questions 1. What systemic, corporate, and individual ethical issues are raised by the Explorer/Firestone case? 2. In your view, and in light of the three theories of manufacturer's responsibilities, what, if anything, did Ford do wrong, and what, if anything, should it have done

differently? What if anything did Firestone do wrong, and what, if anything, should it have done differently. 3. Who, in your view, is morally responsible for the deaths that occurred?