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Transportation equipment industry

Ford Halts Production to Address Firestone Tire Shortage

Strategic Insights

— 2 min read

Ford Motor Co. will temporarily halt production at three US plants to redirect 70,000 tires to customers in need of replacements for recalled Firestone tires. This move comes as a safety group, the Center for Auto Safety, takes the companies to court over their limited recall of Firestone ATX, ATX II, and Wilderness AT tires. The lawsuit demands a wider recall of 12 million more tires still on the road.

Key Takeaways:

  • Ford will close three US plants in St. Paul, Minn., Edison, N.J., and Hazelwood, Mo., for two weeks to redirect tires to customers awaiting replacements for recalled Firestone tires.
  • The recall affects 6.5 million Firestone tires, which include 70,000 tires earmarked for new Explorers and Rangers.
  • Approximately 6,000 workers at the affected plants will receive 95% of their usual pay during the two-week shutdown.
  • Ford's CEO, Jacques Nasser, has guaranteed that all resources are being directed to resolve the situation, with a goal of having more replacement tires available by mid-September.
  • The National Highway Traffic Safety Administration (NHTSA) is investigating 62 deaths and over 100 injuries linked to the recalled tires.
  • The Center for Auto Safety asserts that the recall should be overseen by a judge and that 12 million more tires should be recalled, including all ATX, ATX II, and Wilderness ATs still on the road.
  • Ford has authorized over 30 brands to replace the recalled tires, but faces criticism from the Center for Auto Safety and other groups over the limited nature of the recall.
  • The recall has created a nationwide shortage of 15-inch tires, with Ford Explorer sales slowing by 7% in August.
  • Goodyear has manufactured 2 million tires for Ford's recommended pressure of 26 pounds per square inch with no safety problems.

Statistics:

  • 6.5 million: Number of Firestone tires recalled
  • 70,000: Number of tires earmarked for new Explorers and Rangers being redirected to customers awaiting replacements
  • 6,000: Number of workers at affected plants receiving 95% of their usual pay during the two-week shutdown
  • 62: Number of deaths being investigated by NHTSA
  • 100+: Number of injuries being investigated by NHTSA
  • 12 million: Estimated number of additional tires that should be recalled according to the Center for Auto Safety
  • 39,000: Estimated monthly sales of Ford Explorers, down 7% due to the recall
  • 2 million: Number of Goodyear tires manufactured for Ford's recommended pressure of 26 pounds per square inch

Sources:

  • Detroit Free Press, "Ford Halts Production to Address Firestone Tire Shortage"
  • Bridgestone-Firestone Inc.
  • National Highway Traffic Safety Administration (NHTSA)
  • Center for Auto Safety
  • Ford Motor Co.
  • Goodyear Tire and Rubber Company
  • Washington Post

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