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Ford-Firestone Case

In: Business and Management

Submitted By lilibethchan
Words 489
Pages 2
I. Synthesis
FORD MOTOR COMPANY:
• Founded by Henry Ford in 1903.
• Ford Explorer – launched 1990, became the most popular SUV vehicle in America o From 1990-2000, Explorer proved to be the among the safest SUV
 Fatality rate is 27% lower than passenger cars overall and 17% lower than other SUVs
 SUV rollover > Sedan rollover because of higher center of gravity o Profit at $8,000 o Same truck frame used on Ranger pickup – “Twin I-Beam” o Also same with Bronco II SUV which had 800 lawsuits and 43 fatalities o 600 pounds heavier than Ranger, however it did not upgrade the suspension and tires to carry the bigger load. o 1988 test reports showed the Explorer had an even greater tendency than the Bronco II to lift two wheels off the ground
 Engineer recommendations: Mounting the wheels 2 inches apart; lowering the engine; replacing the Twin I-Beam suspension; lowering the tire pressure; stiffening the springs o By not optimizing the vehicle’s center of gravity, tire selection would become an important factor.
FIRESTONE TIRE & RUBBER COMPANY
• Founded by Harvey Firestone
• Tire manufacturer since 1900
• In 1990 it was acquired by Bridgestone USA Inc. for $2.6 Billion
• Developed ATX tire (and ATX II) for Ford Explorer – also used on the Ranger. o Recommended pressure was 30 to 35 psi.
• On March 1993, Firestone’s day-to-day operations were put in the hands of John Lampe.
• July 1994, 4,000 United Rubber Workers union members went on strike on 5 Firestone plants including its plant in Decatur, Illinois. o After 7 months, Firestone hired non-union workers (unskilled and untrained) to replace striking workers.

II. POINT OF VIEW
DESIGN FLAWS
FORD FIRESTONE
1. Ford Explorer is more than 600 pounds heavier than the Ranger; but suspension and tires are not suited to carry a bigger load. 1. Firestone agreed to reduce tire weight to…...

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