Susan Candiotti: Ford/Firestone woes

Susan Candiotti

Susan Candiotti is a CNN Correspondent.

Q: How far-reaching are the problems and what percentage of cars are having problems? Do people need to worry about their cars?

CANDIOTTI: There are still no clear-cut answers. Firestone has consistently maintained that it recalled all the tires necessary and that the rest of its tires on the road are safe. Firestone has blamed the problem of tread separation, at least partially, on Ford, saying that Ford had a tire design problem. Ford has laid the blame totally at the feet of Firestone saying that it is a tire side problem.

VIDEO CNN's Susan Candiotti says the automaker will spend over $2 billion to replace Firestone tires on Ford vehicles (May 22) Play video (QuickTime, Real or Windows Media)     ALSO Ford to recall tires

As to whether consumers need to be worried about any Firestone tires they may have on their Ford Explorers, that is a question that they need to raise with Firestone personally.

Some analysts suggest that Ford may be coming forward now because of a general concern that summer is approaching. Many of the tire tread separations last summer were due in part to the hot weather. Others suggest that Ford, concerned about the increasing number of lawsuits, wanted to step to the forefront and resolve this matter once and for all, possibly to cut off additional lawsuits.

Q: What does this fallout mean for the companies' futures?

CANDIOTTI: Firestone says that Ford made up five percent of the Bridgestone/Firestone business and, therefore, maintains that its divorce from Ford, which lasted nearly a century, will not have a major economic impact on Firestone. Ford clearly has many other resources to turn to for tire supplies. In fact, recently, on the Explorer 2002 model, it offered consumers a choice of which brand of tire the customer wanted to have with the car.

Auto industry analysts to whom we have spoken suggest that Ford will be able to survive the difficulty. Other analysts add that the jury is still out on whether the Firestone brand will survive the controversy. They say that its parent company, Bridgestone/Firestone, will survive economically. But it is simply the Firestone brand that might not last.

Q: What is the opinion of the dealers you have talked to on the fallout?

CANDIOTTI: Some of the Ford dealers that we have spoken to applaud Ford for the replacement program saying that it makes it easier to satisfy consumers that were very unhappy with Ford for not replacing all Firestone tires on Ford Explorers. The dealers suggest that Ford will come out smelling like a rose as a result.

One customer that we spoke with that drives a Ford Explorer with tires not included in the original recall said that he hopes that his Firestone tires will be included in the Ford replacement plan because, he said, his wife and he remain concerned about the safety of the tires even though Firestone has continued to maintain that there is no problem with them. He is still driving on them.

Q: Do you have any final thoughts you would like to share with us?

CANDIOTTI: It will be interesting to see how all of this impacts the ongoing class action lawsuit currently being reviewed by a federal judge in Indianapolis, as well as what effect the Ford replacement program may have on several states that are considering taking legal action against Ford and Firestone for deceptive trade practices. Will this get Ford off the hook?

It should be emphasized that Firestone continues to suggest that Ford has not been forthcoming with its own studies and analysis, and that in Firestone's view, Ford should accept responsibility for any role it may have played in these rollover accidents because of poor car design. So we haven't seen the last of the finger pointing between these two car and tire making giants.