Bridgestone Firestone to pay $240 million settlement

Manufacturing News, Source : TheManufacturer.com
Published : 12 Oct 2005 17:46

Bridgestone Firestone North American Tire announced a settlement agreement in which it will pay $240 million to Big Three automaker Ford in order to settle claims due to Firestone’s recall of its defective tires in 2000.

The settlement will help defray the costs of Ford’s 2001 tire replacement program in the wake of the recall. Firestone’s recall of 6.5 million tires was instituted after 271 people were killed, and many more injured, due to accidents blamed on defective Firestone tires. As a result of the recall, Ford ended a nearly 50-year business relationship with Firestone.

“The Bridgestone group benefits from the certainty that a settlement brings,” said Shoshi Arakawa, executive vice president of international operations of Bridgestone Corporation. “It is clear that the best option for the future of the North American tire business was to explore whether an acceptable settlement could be reached which would allow Firestone to put this matter behind it and focus on its future business opportunities. This settlement achieves that goal.”

Bridgestone Corporation, headquartered in Tokyo, Japan, is the world's largest manufacturer of tires and other rubber products. Tires account for 80 percent of Bridgestone's sales worldwide.

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