FORD AND FIRESTONE'S TIRE RECALL:
THE COSTLIEST INFORMATION GAP IN
HISTORY
Presented by----
•Palash Goyal - 2014 MBA-15
1
...
•Founded by Henry Ford in
1903.
• Global auto Manufacturer.
• Owns many automotive brands
including Ford, Mercury,
Lincoln...
Firestone’s Long
relationship with
Ford Motor
company began in
1906,when Ford
Motor bought
2000 sets of tires
from Harvey
...
About the case……
1988
1991
Firestone weakened by 1978 tire recall.
In may, Bridgestone took over Firestone
and saved them ...
Cont…..
1999
In March, Bridgestone/ Firestone sent
a confidential memo to Ford.
In August, Ford announced a recall in
16 f...
Firestone tires
2226
Complaints
More than
400 injuries.
101 people
died
involving
Trend
separation
between
1992-1999 6
14-...
Tread Separation occurs when the rubber tread
begins to separate from the steel belts inside the
tire. This occurs because...
•After being informed of numerous complaints,
NHTSA (National Highway Traffic Safety
administration) met wit Ford and Fire...
9
•Firestone released a memo to Ford dated March 12,
1999, in which Firestone expressed "major
reservations" about a Ford ...
10
•Ford did not have warranty data on tire recalls.
•Firestone’s damage claims moved to
Nashville; warranty adjustments i...
11
2001
Yoichiro Kaizaki, the president and chief executive of the
Bridgestone Corporation, resigned in January.
May 22, 2...
12
Which company was responsible???
or
Other believed
that Ford should
share
Responsibility.
Many people
blamed
Firestone....
13
2002
The NHTSA found that Firestone was
responsible for tire separation.
14-04-2015
14
14-04-2015
Crisis in information management…
The information was available, but it was not easy to
get at and it was no...
14-04-2015
15
•There was not an environment of information
sharing.
•Not all parties were collecting the correct data.
•No...
14-04-2015
16
Suggestion…
 There should be implementation of information system.
There should be environment of informat...
14-04-2015
17
14-04-2015
18
Questions???
Upcoming SlideShare
Loading in …5
×

Ford and Firestone's Tire Recall: The Costliest Information Gap in History , case study

987 views

Published on

Ford and Firestone's Tire Recall: The Costliest Information Gap in History

Published in: Technology
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
987
On SlideShare
0
From Embeds
0
Number of Embeds
14
Actions
Shares
0
Downloads
45
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Ford and Firestone's Tire Recall: The Costliest Information Gap in History , case study

  1. 1. FORD AND FIRESTONE'S TIRE RECALL: THE COSTLIEST INFORMATION GAP IN HISTORY Presented by---- •Palash Goyal - 2014 MBA-15 1 14-04-2015
  2. 2. •Founded by Henry Ford in 1903. • Global auto Manufacturer. • Owns many automotive brands including Ford, Mercury, Lincoln & Volvo. •Founded by Harvey Firestone in 1900. • Acquired by Bridgestone tires, a Japanese firm. •Supplies tires for various vehicles. 2 14-04-2015
  3. 3. Firestone’s Long relationship with Ford Motor company began in 1906,when Ford Motor bought 2000 sets of tires from Harvey Firestone. 3 14-04-2015
  4. 4. About the case…… 1988 1991 Firestone weakened by 1978 tire recall. In may, Bridgestone took over Firestone and saved them from bankruptcy due to the recall. Bridgestone/Firestone ATX, ATXII and Wilderness AT tires were being used on the Ford Explorer. 4 14-04-2015
  5. 5. Cont….. 1999 In March, Bridgestone/ Firestone sent a confidential memo to Ford. In August, Ford announced a recall in 16 foreign countries, but not in US and NHTSA not notified. 1992 In 1992, Ford started to receive complaints regarding the Firestone tires. 5 14-04-2015
  6. 6. Firestone tires 2226 Complaints More than 400 injuries. 101 people died involving Trend separation between 1992-1999 6 14-04-2015
  7. 7. Tread Separation occurs when the rubber tread begins to separate from the steel belts inside the tire. This occurs because it is hard to adhere rubber to steel. Tread Separation becomes more likely at high speeds and in warmer climates. What is Tread Separation? 7 14-04-2015
  8. 8. •After being informed of numerous complaints, NHTSA (National Highway Traffic Safety administration) met wit Ford and Firestone to discuss a plan of action. •On august, Bridgestone/Firestone inc. issued a recall of 6.5 million tires. •The recall was 90% completed in December. 2000 8 14-04-2015
  9. 9. 9 •Firestone released a memo to Ford dated March 12, 1999, in which Firestone expressed "major reservations" about a Ford plan to replace Firestone tires overseas. •Ford CEO Nasser testified before a joint congressional hearing that "this is clearly a tire issue and not a vehicle issue. •Ford said it was under no obligation to report overseas recalls. Sept 2000… 14-04-2015
  10. 10. 10 •Ford did not have warranty data on tire recalls. •Firestone’s damage claims moved to Nashville; warranty adjustments in Ohio •"Trend identified after-the-fact by the New York Times. •Department of Transportation doesn’t have funding to track all data. •NHTSA: “our testing is clearly outdated” Cont.. 14-04-2015
  11. 11. 11 2001 Yoichiro Kaizaki, the president and chief executive of the Bridgestone Corporation, resigned in January. May 22, 2001—Bridgestone/Firestone ended its 100-year relationship as a supplier to Ford, accusing the automaker of refusing to acknowledge safety problems with the Explorer. 14-04-2015
  12. 12. 12 Which company was responsible??? or Other believed that Ford should share Responsibility. Many people blamed Firestone. 14-04-2015
  13. 13. 13 2002 The NHTSA found that Firestone was responsible for tire separation. 14-04-2015
  14. 14. 14 14-04-2015 Crisis in information management… The information was available, but it was not easy to get at and it was not shared. Role of databases and data management… There were several isolated databases. There were no easy ways to detect trends. There were no ways to share data (Ford had to “pry” information from Firestone). Not all data collected. MIS Application…
  15. 15. 14-04-2015 15 •There was not an environment of information sharing. •Not all parties were collecting the correct data. •No one was proactive about looking into problems. •Both Ford & Firestone were responsible. Conclusion
  16. 16. 14-04-2015 16 Suggestion…  There should be implementation of information system. There should be environment of information sharing within the organization and between the parties. Need to be PROACTIVE not reactive! Better trend analysis  Causes of problem should be identified, than corrective action must be taken.  Data that is collected should be used effectively & efficiently.
  17. 17. 14-04-2015 17
  18. 18. 14-04-2015 18 Questions???

×