Bridgestone to pay Ford $240 million in settlement
Reuters / October 12, 2005
DETROIT -- The U.S. arm of Japan's Bridgestone Corp. on Wednesday said it
will pay Ford Motor Co. $240 million to settle a longstanding dispute
between the companies over Ford's massive Firestone tire safety recall.
In 2001, in one of the biggest recalls in U.S. history, former Ford Chief
Executive Jacques Nasser said the automaker would spend $3 billion to
replace 13 million Firestone tires, installed mostly as original equipment
on the company's popular Explorer SUV.
Federal regulators have linked tread separation on the tires, and resulting
rollover accidents, to about 270 deaths and more than 800 injuries in the
Ford and Bridgestone Firestone North American Tire LLC both said the
settlement laid to rest all remaining matters between the two companies
stemming from the safety recall.
"We have revolved all of our differences with Bridgestone Firestone
amicably," Ford said in a statement.
Ford spokeswoman Kathleen Vokes said some class-action lawsuits were still
pending against the second-largest U.S. automaker related to the Firestone
and Explorer safety dispute.
Vokes added that Ford expected the lawsuits to be dismissed but not as a
result of Bridgestone Firestone's settlement with Ford.