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More Woes For Firestone and Ford

A Federal Judge has refused an application by Ford and Firestone to dismiss 121 cases brought against the companies where the cases involved accidents in Venezuela and Columbia. Judge Barker ruled that the defendants had not proven that the cases would get a fair hearing in those countries. The decision is not binding on other courts, but may influence similar cases being brought elsewhere in the USA. Firestone was “extremely disappointed” by the ruling, and Ford said it was “unprecedented”. Both defendants are likely to appeal the case.

27th March 2002/by Tyrepress Editors

Ford Acknowledges Loss Likely On Kwik-Fit Sale

According to the Financial Times, Ford is admitting for the first time that it will face a substantial loss when it disposes of Kwik-Fit. The FT says it has seen documents from Ford’s auditors, warning that the proceeds from any disposal will not be in line with the book value. The UK parent of Kwik-Fit (and other companies such as Jaguar and Aston Martin) – Ford Automotive Holdings – recently filed its year 2000 accounts, which include the first year’s contributions from Kwik-Fit. These show pre-tax losses of 356 m GBP (580 m Euro) on a turnover of 9.42 bn GBP (15.35 bn Euro). 1999’s pre-tax loss was 175 m GBP (285 m Euro) on a turnover of 8.71 bn GBP (14.2 bn Euro).

25th March 2002/by Tyrepress Editors

“I’m Not Bidding” – Tom Farmer

A report in a Scottish newspaper quotes Sir Tom Farmer (61) as saying that he is not going to bid for Kwik-Fit. The Glasgow Herald report follows an article in the financial newspaper Business AM, which suggested that Farmer had tabled a bid, backed by the Bank of Scotland. He denied this, saying: “I am not going to bid and that has always been the case. But it seems that the more I say, the less people believe me.” Ford are reported as having whittled down the number of bidders to six from 35 and the winner will be named in May.

15th March 2002/by Tyrepress Editors

Shredded Firestones Put To Use

Firestone tyres recalled in the USA are being put to good use, with rubber crumb used as artificial turf. A Montreal-based company called FieldTurf is producing the artificial turf for the Lions’ new stadium at Ford Field, Dearborn. A spokesperson for FieldTurf said that it had been specified that the rubber crumb came exclusively from Firestone tyres, in line with Bill Ford’s stance on corporate environmental responsibility.

11th March 2002/by Tyrepress Editors

Net Profit To Triple This Year For Bridgestone

A poll of analysts suggests that Bridgestone’s net profit for 2002 will treble. The forecast is for a net profit of 57.7 billion Yen (500.5 m Euro), compared with the 2001 figure of 17.7 billion Yen (152.3 m Euro). Analysts believe that the corporation is slowly putting the Firestone debacle behind it and there are hopes of a reconciliation with Ford. Other factors causing optimism include the weak Yen and an increase in Bridgestone’s business with GM.

19th February 2002/by Tyrepress Editors

NHTSA Refuses Firestone Request

The NHTSA has turned down a request by Firestone to open an inquiry into a possible vehicle fault on the Ford Explorer. Firestone alleges that the Explorer has a greater propensity to roll over than other SUVs. The NHTSA admits that SUVs have a higher tendency to roll than other vehicles, but is adamant that the data held by the organisation does not substantiate Firestone’s claim regarding the Explorer.

15th February 2002/by Tyrepress Editors

Sir Tom In Bid To Buy Kwik-Fit

Sir Tom Farmer is making a bid, rumoured to be in the region of 650 million pounds, to buy back Kwik-Fit from Ford. The bid is supported by the Royal Bank of Scotland and the HSBC. However, there is serious competition from other interested parties and the result of the sale is not a foregone conclusion.

6th February 2002/by Tyrepress Editors

Confirmation Of Beru/Lear Contract

Lear and partner Beru have confirmed the award of a contract to supply Ford with Tyre Pressure Monitoring Systems, as reported here earlier in January. The contract is to supply TMPS for a future model of the Ford Explorer. Sales of the Lear Beru TMPS are expected to generate several hundred million dollars as a result of federal regulations requiring TPMS devices to be fitted to every new car sold in the USA.

1st February 2002/by Tyrepress Editors

It Is Not A Firestone Problem

A California jury in a civil case raised against Ford, has found that the Ford Explorer is “defective by design”. The first time a jury has found Ford liable. According to plaintiff’s attorney Garo Mardirossian, “The floodgates have now opened up. It’s not a Firestone Tire problem. It’s a car problem.” The jury rules that the vehicle involved in the case was not only faulty at the time of the accident, but was faulty at the time of shipping from Ford. This flies in the face of statements to the contrary from the NHTSA.

1st February 2002/by Tyrepress Editors

Buyback To End At Ford

Ford will cease its buyback offer for Firestone tyres at the end of March. Martin Inglis, the chief financial officer said that Ford had replaced around 9.5 million of the 13.5 million tyres included in the programme. The end date was intended to encourage the changeover of the remaining tyres at the earliest opportunity.

18th January 2002/by Tyrepress Editors

Losses At Lincoln Mercury Blamed On Firestone

Ford’s Lincoln Mercury division has been badly hit by the Firestone affair. Ford claim that the recall hit the Mercury Mountaineer brand hard. Losses of around $1 billion have been reported. Despite this downturn, Ford plan that Lincoln will concentrate on the SUV/Cross-over sector, and is expected to contribute around a third of the company’s profits by 2005.

18th January 2002/by Tyrepress Editors

Ford Will Sell Kwik-Fit

Goldman Sachs has been appointed to handle the sale of Ford’s Kwik-Fit Group as part of a move to concentrate efforts on core vehicle manufacturing businesses. The sale is expected to raise over one billion pounds (1.63 billion Euro). Ford bought the company from Chairman Sir Tom Farmer for 1.6 billion pounds (2.61 billion Euro) in 1999. Last week Sir Tom was emphatic that whatever the future of Kwik-Fit, he intended being involved.

16th January 2002/by Tyrepress Editors

Farmer To Buy Back Kwik-Fit? (updated)

There is speculation in the UK press that Sir Tom Farmer may be poised to buy back Kwik-Fit from Ford. Ford would sell Kwik-Fit for $1 bn, it is suggested, which is just over half of what the car manufacturer paid for the company in 1999.

16th January 2002/by Tyrepress Editors

Ford On The Floor: 35,000 Have to Go

William Clay Ford has presented his restructuring programme which he hopes will lead the car giant out of crisis. The company wants to reduce the workforce by 35,000; 22,000 of which will be in the USA. None of the redundancies will affect German (or UK) Ford operations. Ford told journalists in Detroit that he wants to reach profits of $7bn by the year 2005. But first Ford has to make provision for $5bn in restructuring costs.

14th January 2002/by Tyrepress Editors

Firestone Recall – Now Bridgestone Sued For First Time

For the first time in the Firestone recall saga, Bridgestone is being sued alongside its US subsidiary. A 46-year old nurse, injured in an Explorer rollover accident, is suing Bridgestone Tokyo, the US-based subsidiary Bridgestone/Firestone Americas Holding Inc. and Ford. In the past, Bridgestone has claimed that it is not liable because its US company is independently operated, although in November a US District Judge ruled that Bridgestone can be held liable, as it transacts business in the United States and is therefore subject to US laws.

11th January 2002/by Tyrepress Editors