The Scandal: In August of 2000, the U.S. National Highway Traffic Safety Administration, began an investigation of Firestone ATX and Wilderness AT tires after complaints that the rubber peeled off the tire casing resulting in accidents, including 21 involving fatalities. Many of the publicized blowouts were on Ford Explorer SUVs.
The Fall Out: Bridgestone recalled 6.5 million tires--the second largest tire recall in U.S. history. Partially as a result of consumer worry about the recall, Ford Motor lost $4.8 billion in 2001.
Now: Ford rebounded from the bad PR to earn a net income of $1.4 billion in 2005. The Firestone brand is regaining consumer confidence and the company feels performance in North America is on a recovery track.
