Allstate and State Farm, two of America’s largest insurers are aiming to recover the costs of claims paid out to victims of traffic accidents involving Ford Explorers and Firestone tyres. An insurance industry spokesman said” Firestone and Ford have attempted to avoid the courts and settled claims quietly with the plaintiffs, I would expect the same strategy with the insurance companies.”
Republican Senator Tauzin’s data on 11 replacement tyre models has been forwarded to Ford. Tauzin, chairman of the House Energy and Commerce Committee has asked Ford for a comprehensive explanation of how it decided which brands of tyres to use as replacements. He has also asked Ford to run “rig tests” on all replacement tyre brands before installing them. This follows Committee investigators’ claims that 11 of the replacement tyre models had higher damage and injury rates than the Firestone Wilderness ATs being replaced.
Recently in Barcelona the tyre manufacturer Continental introduced its new ultra high performance tyre ContiSportContact 2 to the press. And just like its predecessor, ContiSportContact 1, of the ContiPremiumContact important aspects of the new tyre have been created according to nature, as both the new, highly efficient tyre tread mixture and the bionic shape have been modelled on nature. Geert Roik, leader of the passenger car tyre development, explains, that it was the first time that a tyre has been prepared following the design of a spider’s web, which is both elastic yet firm. The shape has been modelled on a cat’s paw. However, it has always to be remembered that however high the engine performance, its output will be transmitted to the ground over a contact area of a size of four-postcards. The constant improvement of the power transmission over these four small areas in order to adjust it to existing or intended vehicles, develops the tyre engineer’s skills. According to the manufacturer, the ContiSportContact 2 will be a sport tyre, developed on the latest state-of-the-art basis and designed for existing and future high-performance vehicles. According to Dirk Gentgen, Continental’s marketing director for passenger car tyres in Europe, a durable and increasing market is developing because increasingly, tuning and fashion will not stop at tyre selection. Many car drivers think that wide and fashionable tyres as well as fashionable rims are necessary for a sports car to be beautiful. Gentgen is stating the target: “In this segment we want to decisively increase our market share in the coming years.”
The 13 million recalled Firestone tyres in the USA may be about to create another set of problems.Ford has contracted Recovery Technologies Group (RTG) to collect and recycle 6 million of the tyres. The company is having to use sub-contractors to collect, so may not be fully in control of the collection and it is feared that many tyres may be returned to the road. Additionally, RTG, can currently only shred 500 tyres per day, which equates to 32 years of non-stop shredding. Even if the firm does shred and crumb every tyre, there are serious doubts about the available market for the end product.
Ford is planning to recall 23,000 vehicles sold in Europe in order to replace the tyres. The vehicles in question are mainly Explorers and the figure is around 60 per cent of Explorers sold over the past decade. Other models affected are Ford Expedition SUVs and Ranger pick-ups, although the numbers of these are small.
The US Government has asked Firestone to recall another 3.5 million tyres. Shigeo Watanabe, president of Bridgestone stressed that this was not a recall, but a replacement programme as Bridgestone Firestone had not admitted any defects. The tyres being exchanged are P235/75R15 and P255/70R16 fitted to Ford Explorers and Mercury Mountaineer SUVs up to 1998.
Goodyear has disputed data cited at the congressional hearing into the Ford/Firestone dispute. The company claims to have submitted its own safety data and is questioning the committee’s interpretation of the data they have already received. According to Goodyear the Ford data of damage claims of five parts per million is based on a Ford standard and that a damage claim does not reflect a defect. Goodyear added that “the use of relevant data and comparisons by the committee will remedy any consumer confusion of fears”.
The market for off road vehicles is constantly changing; also the market for suitable tyres and wheels. In the 80s Japanese car makers Toyota, Nissan, Suzuki, Mitsubishi and Honda created this market with 4 wheel drive vehicles able to be used on rough terrain. Now the 4×4 cars have become more suitable for use on the streets and the term Sport Utility Vehicle (SUV), replaces the former “Off Road Vehicle”. Car manufacturers like Ford, Chrysler, BMW and Mercedes have discovered that this has become more than just a niche market. Explorer, Cherokee, X5 and M-class are closer to luxury cars than those for use off the beaten track. Some tyre manufacturers have developed their off-road programme in this direction, whilst others have directly used the platform of existing passenger car tyres for this new generation of vehicles. The 4×4 tyre market will grow within the next few years as a lucrative market segment for the tyre industry, tyre dealers and also for the light alloy wheel business. Typical consumers in the 80s, with sparsely-equipped Suzukis, were not able to invest much money in tyres and wheels, but nowadays drivers of these cars are members of a more affluent society. The trends are very similar to passenger cars, with sizes becoming larger, faster, V, W, Y and Z speed ratings and higher load indices.
In a management reshuffle at Ford in the USA, Henry Wallace, Chief Financial Officer and Wayne Booker, Vice Chairman, are to retire. There is speculation that Martin Inglis, Head of Operations for Ford North America, is to succeed Wallace and that Nick Scheele, Chairman of Ford Europe, is to return to the States as a replacement for Inglis. Ford stressed that these latest moves have no connection with the current Firestone recall situation.
Ford and Goodyear made arrangements to allow Ford customers to obtain Ford-approved replacements for Firestone Wilderness AT tires at no charge to the customer. In addition, the tire manufacturer is making arrangements to ensure adequate availability of Goodyear tires at Ford and Mercury dealerships through its own network of independent tire dealers and Goodyear company-owned stores. Goodyear has increased tire production significantly at seven North American manufacturing plants to make tires available for use in the replacement program.
Ford has chosen Hankook as the single supplier of tyres for the F-150 pick-up in the USA. The tyre sizes are 235/70R17 and 235/75R17. The first shipments will start in a few months and expected volume is to be around 600,000 tyres. Hankook is also hoping to win an OE order from Volkswagen: The possible tyre size could be 205/45R16 to be offered as an option by Volkswagen.
Under pressure in Venezuela, Ford has produced an advertisement listing statistics that show that the Explorer compares favourably in safety terms with other SUVs. Although no competitive vehicles are mentioned by name in the advert, both Daimler/Chrysler and GM (Venezuela) have objected to it and are casting doubts on the accuracy of the figures.
Korean tyre manufacturer Hankook has received an order from Volvo to supply the spare tyre (size T 125/80 R17) for the models V70, S60 and S80, from 1st July this year. It is said that Michelin, who produced these tyres up till now, has delivery problems due to a reduction of production in Great Britain. The order from Volvo is worth around 5 million Euros and for Hankook, it is another foot in the Ford door after the company won its first OE order from Ford last year.
Recent reports questioning the reliability of some of the tyres being used by Ford to replace Firestones are doubtless partly responsible for the car manufacturer’s plans to conduct a series of tests on replacement tyres. Ford’s team of around 100 engineers will carry out a number of tests, including measuring wedge thickness, temperature monitoring and how much force it takes to cause a tread separation. Other checks on the relationships between load/speed/temperature will be carried out in conjunction with tyre manufacturers as well as in-house.
The cut in production of 60,000 units Explorer and Ranger models by Ford in the second and third quarter could cost aluminium wheel maker Superior $2.5 million in revenue.
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