Ford and Firestone faced a critical situation in 2000 when tread separation in certain tire models led to over 270 fatalities. 15-inch tires used mainly on Ford Explorers were implicated in crashes causing gruesome deaths. Initially, Ford and Firestone blamed one another and consumers rather than addressing the problem. They were called to testify before Congress. It was ultimately determined that Ford was primarily at fault for not addressing stability issues that caused tread separation. Firestone recalled 6.5 million tires at a cost of $1 billion. The companies learned crisis management requires promptly focusing on the key issues, providing transparency, and managing expectations rather than assigning blame.

1. CRITICAL SITUATION IN
AN ORGANIZATION AND
MANAGERIAL SOLUTION
JUDITH ESTHER MARTINA.J
REG NO: 73
SUBJECT: MANAGERIAL SKILLS
MBA-B

2. FORD AND FIRESTONE TIRE AND RUBBER
COMPANY 2000

3. CONTENTS IN THE PRESENTATION
INTRODUCTION
INCIDENT HAPPENED
APPROACH TO THE PROBLEM
CONCLUSION

4. INTRODUCTION
THE TIRE FAILURES ARE LINKED TO 271 FATALITIES AND OVER EIGHT HUNDRED INJURIES IN THE UNITED
STATES WITH MORE INJURIES AND FATALITIES OCCURRING INTERNATIONALLY.
IT LED FIRESTONE TIRE AND FORD MOTOR COMPANY TO RECALL AND REPLACE 23 MILLION TIRES , IT CUT
THE MARKET VALUE OF FIRESTONE TIRE IN HALF.
 FIRESTONE CLOSED THE DECATUR, ILLINOIS FACTORY WHERE THE TIRES WERE MANUFACTURED, SEVERAL
EXECUTIVES IN FIRESTONE AND FORD RESIGNED OR WERE FIRED.
 IT BROUGHT AN END TO THE NEARLY 100 YEAR CORPORATE RELATIONSHIP BETWEEN FORD MOTOR
COMPANY AND FIRESTONE.

5. INCIDENT HAPPENED
• 15- INCH WILDERNESS AT, RADIAL ATX AND ATX 2 TIRE TREADS WERE SEPARATING FROM
THE TIRE CORE.
• LEADING TO GRISLY, SPECTACULAR CRASHES
• THESE TIRES WERE MOSTLY USED ON THE FORD EXPLORER, THE WORLD’S TOP-SELLING
(SUV)

6. APPROACH TO THE PROBLEMS
• FIRST, THEY BLAMED CONSUMERS FOR NOT INFLATING THEIR TIRES PROPERLY
• THEN THEY BLAMED EACH OTHER FOR FAULTY TIRES AND FAULTY VEHICLE DESIGN
• THEN THEY SAID VERY LITTLE ABOUT WHAT THEY WERE DOING TO SOLVE A PROBLEM
THAT HAD CAUSED MORE THAN 100 DEATHS
• THEY GOT CALLED TO WASHINGTON TO TESTIFY BEFORE CONGRESS

7. CONCLUSION RELATED TO CASE STUDY
IN CONCLUSION, IT WAS PROVED THAT FORD IS ONE TO BE BLAMED FOR THE ACCIDENTS BECAUSE IT DID
NOT ADOPT PROPER MEASURES TO ADDRESS THE STABILITY PROBLEMS (IMPROPER TIRE ALIGNMENT)
THAT LED TO SEPARATION OF TREADS FROM TIRE CORE. INSTEAD OF TAKING THE MORAL AND LEGAL
RESPONSIBILITY TO FIX THE PROBLEM , IT JUST POINTED OUT FINGERS.
• BRIDGESTONE/FIRESTONE RECALLED 6.5 MILLION TIRES.
• TOTAL COST =1 BILLION $.

8. LEARNINGS FROM CRISIS MANAGEMENT
THE GREAT LEARNINGS FROM CRISIS MANAGEMENT IS AS FOLLOWS:
• FOCUS ON THE SITUATION AT HAND
• ACT PROMPTLY, NOT IN HASTE
• PROVIDE PERSPECTIVE AND MANAGEMENT EXPECTATIONS
• BE FLEXIBLE

9. REFERENCES
• GOOGLE(IMAGES)
• WIKIPEDIA
• QUORA.COM

10. THE END