Tire Recall Impact Far Reaching
The recent recall by Firestone of 6.5 million tires will have wide-reaching affects on the auto industry -- many yet to be seen -- according Tom Powers, Ph.D., UAB business management professor. "Not only will it have an impact on customers' tire buying preferences, but Ford Motor Co. has been affected by shutting down its truck production to free up tires for the recall, and other tire makers have stepped up production to move into the Firestone market. Future impacts on customer loyalty to both Firestone and Ford remain to be seen. Although they were separate problems and not linked like the present situation, both Firestone and Ford had serious product difficulties in the 1970s that affected owner loyalty. Firestone had problems with the Firestone 500 tire, and Ford with the Pinto."
Contact Powers at 205-934-5664 or [email protected].
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