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CASES & INVESTIGATIONS |
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GENERAL INFORMATION |
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| October 13, 2005 |
Tire Blow Out: Los Angeles Times, "Bridgestone, Ford Settle Tire Dispute" |
Tire maker Bridgestone Corp. agreed to pay $240 million to Ford Motor Co. to settle a cost-sharing dispute over a massive tire recall five years ago.
The deal announced Wednesday involved the recall of nearly 20 million of Bridgestone's Firestone brand tires in one of the most highly publicized product safety scandals in history. At least 350 people were reported killed in the U.S. and abroad, and hundreds more were seriously injured when tire blowouts triggered rollover wrecks of Ford Explorer sport utility vehicles. Ford put the blame on defective tires; Bridgestone said drivers could have steered the vehicles to safety but for their top- heavy design.
"We have effectively settled all the disputes between the two companies," Ford spokesman Paul Wood said. The deal "reflects a compromise," said Chris Karbowiak, vice president of public affairs for Bridgestone Firestone Americas in Nashville.
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