Firestone and Ford: the Tire Tread Separation Tragedy

Mario Avdiu

BUS 351

Case 22

8/3/14

Firestone and Ford: The Tire Tread Separation Tragedy

Ford-Firestone case is a unique violation of business ethics by two corporation, Ford Motor Company and Firestone Tire Company, each of which was the manufacturer of a different product. Ford Motor and Firestone was a partnership between the two industries. Firestone supplied tires to Ford vehicles just like any other part that would come to their assembly.

In 1980’s Ford started making the most popular SUV known as the “Ford Explorer”. In 1987, when a test code was done on the vehicle, it indicated that the stability was worse than its prototype “Bronco”. According to Ford, the optimal way to overcome the stability issue was by lowering the center of gravity, widening the Explorer’s wheel base and using smaller tires. However, when they further analyzed, they found out that it would delay their production and Ford decided to act unethically. When tests were done in 1988 showed that explorer was also lifting two wheels at a speed of 55 mph due to higher center of gravity. Firestone designed specifically for the vehicle. Lowering the center of gravity could have resolved the stability issue to a great extent, but Ford was unwilling to do so because it would delay their production. Ford engineers and officials also rejected some alternatives which could have improved the stability Ford Explorer because they wanted to meet the production deadline. In March 1990, the first Ford Explorer was launched in America. And on February 1991 the first tread separation case was filed against Ford and Firestone. Both companies were unaware of the worse problems to come. This was due to the lower inflation pressure which had to do with the vehicle’s stability problems. In 1994 Firestone decreased the weight of the tire by 10% as they were directed by Ford. After the weight reduction by Firestone, the number of accidents with Explorer grew very rapidly, which led to...