Land Rover Sale Finally Agreed
The sale of Land Rover to Ford by BMW – a deal which was in doubt recently – has been finalised. BMW agreed to Ford’s stipulation that one third of the asking price of 3 bn Euros will not be paid until the year 2005.
The sale of Land Rover to Ford by BMW – a deal which was in doubt recently – has been finalised. BMW agreed to Ford’s stipulation that one third of the asking price of 3 bn Euros will not be paid until the year 2005.
In the USA, the Center for Auto Safety (CAS), the consumer group founded by Ralph Nader, has filed a lawsuit against Ford and Bridgestone/Firestone to try to force the companies to replace all Firestone ATX, ATX II and Wilderness tyres, irrespective of tyre size or place of manufacture. CAS says that the numbers involved would be at least double the current recall figure of 6.5 million tyres.
Lawyers from both plaintiffs and defendants argued in front of a panel of federal judges in Washington as they tried to decide how to deal with the 200 pending lawsuits. The judges will decide within two weeks whether to combine all the evidence and gather all the suits in one process. Ford, Firestone and lawyers for some plaintiffs argued for consolidation, saying it would simplify the process. Others say it might drag out the process unnecessarily. The multi-district panel hearing has caused the postponement of a hearing scheduled for 16th October. This latter case being sought by the Center for Auto Safety (Ralph Nadar’s organisation), seeks to widen the recall of Bridgestone/Firestone tyres. The alleged death toll has risen to 119, with injuries increasing to 500, according to the National Highway Traffic Safety Administration.
Beginning in 2001, Continental Teves of North America will supply Ford’s and Mazda’s sports utility vehicles Escape and Tribute with complete brake systems, amounting to approximately 250.000 units a year.
Ford Chief Executive Jacques Nasser has described the news that the recall of Firestone tyres in the USA might take until next spring as “unacceptable”. Originally, the recall was scheduled to take until summer, but Bridgestone/Firestone announced the revised spring time scale this week. Production of Firestone tyres has doubled and imports have been increased to meet demand. Ford is said to be considering a number of ideas to quicken the recall, including providing rental vehicles for those who are anxious about the delay.
Ford Motor Co are using the Internet to publicise their part in the Bridgestone/Firestone recall. A banner advert used on some 200 sites leads surfers to a comprehensive Ford run website publicising the recall and the details of the tyres involved, advises replacement tyres and authorised replacement dealers. The publicity has the potential to reach 564 million readers.
Ford has announced that car production will end at its Dagenham plant by 2002, with the loss of 1,900 jobs. Dagenham is Ford’s largest UK factory, where the Fiesta and Courier vans are built. Ford also announced that 500 new jobs would be created at Dagenham over an unspecified period in the engine manufacturing operations.
With court appearances imminent lawyers for Ford and Firestone are still discussing how to consiolidate some 100 cases being brought against them in federal courts. It is still hoped to draw all claims before a single judge for a pre-trial preparation. However, continuing differences between Ford and Firestone may lead to a split defence. Plaintiffs’ lawyers are said to be jubilant at the lack of united front on the recall.
A Californian judge has ordered Ford to recall up to two million vehicles in the state. The vehicles were fitted with an allegedly faulty ignition module which, it is said, can lead to vehicles stalling. Ford says it will appeal. A law firm has filed an action against Ford to recall nationwide all of the vehicles fitted with the module and to reimburse customers who have been injured or who have lost out economically. It is estimated that there are 23 million such vehicles in the USA.
At the recent conference of the UK National Tyre Dealers Association (NTDA), Chairman of Council Ashley Croft announced that the Rapid-Fit chain of retailers had applied for membership. Rapid-Fit consists of 300+ fast-fit depots, owned by individual Ford car dealers. This will bring the number of centres in NTDA membership to more than 2,000.
According to the Washington Post, the Ford Explorer has a higher than average accident rate compared to other SUVs. The report was based on statistical analysis of national and Florida state crash statistics. The report suggests that there is evidence that there may be a vehicle related problem contributing to the accidents.
Car manufacturer Ford has – as American news agencies have reported – recalled 876,000 cars of the types Explorer and Mercury Mountaineers because of faulty chassis parts. 262 incidents, mainly occurring in Canada, have been reported to date. The owners of these models will be informed by mail. The Ford press department in Cologne does not regard Germany as being involved in this recall.
Delphi Automotive Systems is to participate in Cosivint, the internet purchase network of General Motors, Ford and DaimlerChrysler. According to the Wall Street Journal, six or seven other companies will join during this week.
The Venezuelan subsidiary of Ford has said that it will no longer fit Firestone tyres as OE on its Lazer vehicle and 350 truck. Goodyear tyres will be used instead. Bridgestone/Firestone says that this represents only a 2 per cent loss of sales in the Venezuelan market.
Dr. Paolo Masera, the current boss of Pirelli Reifenwerke, is convinced that Pirelli has every reason to look to the future as a profitable, independent tyre manufacturer. The revolutionary production method MIRS will not only make it possible for the Italian manufacturer to gain cost leadership, he believes, but the automated production process also promises a great improvement even on today’s quality. He stresses Pirelli’s role as the well-accepted technology partner of the motor manufacturing industry in Europe, supplier to Porsche, BMW, Rover, DaimlerChrysler, Ford, Volkswagen, Audi, Opel and others. Pirelli will not offer a multi-brand strategy because users are less interested in so-called cheap brands; they would rather buy first-class brands at a more favourable price. That does not exclude arrangements with larger customers for the supply of certain group house brands, e.g. Courier, if there is a call for it. The German organisation is facing a fundamental change. In future the emphasis will be more on key accounters, and so-called “channel marketing” is to be strengthened.
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