When is $240 Million NOT a Good Settlement?
Ford and Bridgestone Tire announced that they have settled their legal disputes regarding Ford Explorer tire recalls in 2000 and 2001.
According to Ford, it spent about $3 Billion in replacing Firestone tires that were original equipment on the Ford Explorer. Ford claimed the tires were defective. Firestone claimed that Ford engineered the Explorer with a center of gravity that was too high, and tried to compensate by lowering the recommended tire pressure.
Based on the fact that the settlement amount was less than 1/10 what Ford paid to replace the tires, one wonders how much faith Ford had in its position.
Bridgestone Settles with Ford
Thursday, October 13, 2005
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