One Of The Largest Tire Recalls In Recent History Cost Ford Billions Of Dollars

Imagine driving on the highway when, out of nowhere, your tire tread starts peeling off. That may sound like a nightmare scenario that might even raise your insurance rates, but that exact problem caused one of Ford's and Firestone's biggest recalls. In the early 2000s, the tread on some Firestone ATX, ATX II, and Wilderness AT tires began coming loose as people drove. This was especially a problem on Ford Explorers. At highway speeds, drivers could lose control as the tires malfunctioned, causing the SUVs to roll over. By September 2001, the National Highway Traffic Safety Administration (NHTSA) linked 192 deaths and more than 500 injuries to these tire failures.

This is why, in May 2001, Ford said it would replace all Wilderness AT tires on its SUVs and pickups after months of concern about tire safety. The company ultimately set aside $3 billion to cover the cost, as most of the tires were on Ford vehicles as well as other Ford and Lincoln-Mercury models. It was a hefty expense, but not quite enough to bankrupt the auto company. About nine months before, Firestone issued its own recall of millions of 15-inch ATX, ATX II, and Wilderness AT tires after a federal investigation found safety issues. All told, the total number of tires recalled added up to nearly 19.5 million across both actions.

This number shows how big the safety crisis was and explains why Ford felt it had to act beyond what Firestone had already done.

On August 9, 2000, Bridgestone-Firestone voluntarily recalled about 6.5 million 15-inch tires after an NHTSA investigation. The main tires affected were the P235/75R15 ATX and ATX II from all its factories, along with the P235/75R15 Wilderness AT from the Decatur, Illinois, factory. Most of these tires were installed on Ford Explorers and other Ford trucks. A Connecticut legislative report from November 2000 noted that Firestone had produced about 14.4 million of these ATX and Wilderness AT tires, and around 6.5 million were still being used on U.S. roads when the recall was announced. Recalling that many tires would be a pretty major blow to any company's revenue, but Firestone has still managed to keep its costs more reasonable than some other tire brands decades later.

Bridgestone-Firestone then ended its supply partnership with Ford in a public letter sent on May 21, 2001 (via CBS News), after nearly 100 years of working together. Firestone blamed problems on the Ford Explorer's design, while Ford later pointed to tire failures in a joint hearing in the House of Representatives.

Despite those claims, the day after Firestone sent that letter, Ford announced it would replace every Firestone Wilderness AT tire on its vehicles at no cost to owners. In addition to the 15-inch models from Firestone's Decatur plant, the recall also covered 16- and 17-inch tires. These different sizes meant Explorers, Expeditions, Rangers, F-150s, Mercury Mountaineers, and Mazda B-Series trucks were all covered by the initiative. For owners who had already replaced the larger tires on their own, Ford offered up to $130 in reimbursement.

The Firestone recall led to some major changes in the law. Less than two months after the initial recall, Congress signed the Transportation Recall Enhancement, Accountability, and Documentation (TREAD) Act into law. Under these rules, early warning reporting requirements demand that car and tire makers must send regular reports to the NHTSA with data about deaths, injuries, property damage, and warranty claims, all sorted by make, model, and year.

Companies must also have a plan to make sure replaced tires do not end up back on the road. These steps are still upheld by the NHTSA in official documents and rule updates. In 2013, the NHTSA updated the early warning reporting system to include new types of vehicles, fuel types, and component codes to account for a wider selection of cars including hybrid vehicles.

Also, a rule published in the Federal Register on December 26, 2013, required automakers and equipment makers to create a way for the public to look up recalls by Vehicle Identification Number (VIN) and to share data in a standard format. The NHTSA sent technical details to registered early warning reporting (EWR) account holders so they could set up the required search tool. In 2019, the agency proposed that the period manufacturers are required to keep defect and early-warning records extend from five years for 10 to make sure investigators have enough evidence for EWR analyses.