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In mid-2000, the Firestone Tire Company issued a recall of some of its tires – those mounted on certain sport-utility vehicles (SUVs) of the Ford Motor Company. This was done in response to reports that tire treads on some SUVs separated in use, causing accidents, some of which involved fatal injuries as vehicles rolled over.

At first, Firestone denied there was a problem with its tires, but it issued the recall under pressure from consumer groups and various government agencies. All of the tires in question were produced at the same tire plant, and there were calls to shut down that facility. Firestone suggested that Ford incorrectly matched the wrong tires with its SUVs. There was also the suggestion that the shock absorbers of the SUVs were rubbing against the tires, causing or aggravating the problem.

Both Ford and Firestone denied that this had been an ongoing problem. However, there was a public outcry when it was learned that Firestone had previously issued recalls of these tires in South America, but had not informed officials in other countries. Moreover, both companies had settled at least one lawsuit involving an accident caused by tread separation several years earlier.

This case raises a number of issues, some related to possible causes, as well as ethical issues.

Discuss each of these factors and their actual or potential relevance to what happened.

a. Product design

b. Quality control

c. Ethics

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93130900

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