7. Bridgestone Firestone/Ford Settlement
October 12, 2005
NASHVILLE, Tenn -- Bridgestone Firestone will pay $240 million
to Ford Motors to settle claims related to the tire maker's 2000 recall
of defective tires.
According to the tire company, the settlement will help cover the
costs of Ford's 2001 tire replacement program that followed the
recall.
At least 271 people were reported killed and hundreds more were
hurt in accidents involving Firestone ATX tires. The company recalled
6.5 million of them and has spent more than $1 billion on recall-
related costs.
Bridgestone had blamed defects in some Ford vehicles, while Ford
said the tires were the problem.
In May 2001, Ford began exchanging 13 million Firestone tires free
of charge for its customers and ended its nearly century-old business
ties with Firestone.