The Firestone Tire Controversy
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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BECG005 |
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling ChargesThemes
Ethics in Business |
| Case Length |
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12 Pages |
| Period |
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1991 - 2002 |
| Pub. Date |
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2002 |
| Teaching Note |
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Available |
| Organization |
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Firestone tire
company, NHTSA, NUTS |
| Industry |
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Automobile
Industry |
| Countries |
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USA |
Abstract:
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The case gives an overview of the controversy involving the
US automobile giant, Ford and the Japanese tire 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 tires. This led to the recall of tires by Firestone and it
stopped supplying to Ford. Firestone alleged that the problem was with the Ford
Explorer and not Firestone tires. 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 tires that led to the accidents
and recalled 13 million tires for replacement.
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Firestone insisted that the tires 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 tires
but did not take any action until the National Highway Traffic
Safety Administration (NHTSA) intervened.
Issues:
» Was it ethical on the part of Ford and Firestone to cover the problems in
the Firestone tires?
» What was the quality of information provided to the public by both the
companies?
» The role of NHTSA in the entire controversy.
Contents:
Keywords:
The Firestone Tire Controversy, US automobile giant, Japanese
tire, Tire, manufacturer, Bridgestone, 2001, 174 people, accidents, crashes,
Ford Explorer Sport Utility Vehicle, Firestone tires, 13 mn
The Firestone Tire Controversy
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