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Case
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Reference no. 702-012-1
Authors: Sanjib Dutta
Published by: IBS Center for Management Research
Published in: 2002
Length: 11 pages
Data source: Published sources

Abstract

The case gives an overview of the controversy involving the US automobile giant, Ford and the Japanese tyre manufacturer, Bridgestone/Firestone. By 2001, 174 people were killed in the accidents and crashes involving the Ford Explorer Sport Utility Vehicle which were equipped with Firestone tyres. This led to the recall of tyres by Firestone and it stopped supplying to Ford. Firestone alleged that the problem was with the Ford Explorer and not Firestone tyres. Ford defended the safety of the Explorer saying its statistics has shown that it is safer than other Sport Utility Vehicles. Ford alleged that it was the defective tyres that led to the accidents and recalled 13 million tyres for replacement. Firestone insisted that the tyres are safe and Ford is replacing them to divert attention away from safety problems with its Explorer. From the case students are expected to understand the ethical dimensions of the controversy. Both Ford and Firestone were aware of the problem in Firestone tyres but did not take any action until the National Highway Traffic Safety Administration (NHTSA) intervened.

Teaching and learning

This item is suitable for postgraduate courses.
Location:
Industry:
Size:
Large
Other setting(s):
2000-2001

About

Abstract

The case gives an overview of the controversy involving the US automobile giant, Ford and the Japanese tyre manufacturer, Bridgestone/Firestone. By 2001, 174 people were killed in the accidents and crashes involving the Ford Explorer Sport Utility Vehicle which were equipped with Firestone tyres. This led to the recall of tyres by Firestone and it stopped supplying to Ford. Firestone alleged that the problem was with the Ford Explorer and not Firestone tyres. Ford defended the safety of the Explorer saying its statistics has shown that it is safer than other Sport Utility Vehicles. Ford alleged that it was the defective tyres that led to the accidents and recalled 13 million tyres for replacement. Firestone insisted that the tyres are safe and Ford is replacing them to divert attention away from safety problems with its Explorer. From the case students are expected to understand the ethical dimensions of the controversy. Both Ford and Firestone were aware of the problem in Firestone tyres but did not take any action until the National Highway Traffic Safety Administration (NHTSA) intervened.

Teaching and learning

This item is suitable for postgraduate courses.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
2000-2001

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