January 2, 2001

Bridgestone / Firestone Recalls 8, 000 Tires

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REUTERSFiled at 6:03 p.m. ET
DETROIT (Reuters) - Bridgestone/Firestone Inc., in the midst of replacing
6.5 million troubled tires, has recalled another 8,000 tires with adhesion
problems that were made in Mexico and equipped on General Motors Corp.
(GM.N) SUVs, the companies said on Tuesday.
The tire maker, a unit of Japan's Bridgestone Corp. (5108.T), will replace
about 8,000 16-inch Wilderness LE tires, one week's worth of output at its
plant in Cuernavaca, Mexico, Bridgestone/Firestone and the No. 1 automaker
said.
The problem can lead to the tread separations or tire blowouts, the same
problems linked to 148 U.S. traffic deaths and the earlier
Bridgestone/Firestone recall of 6.5 million tires mostly equipped on Ford
Motor Co.'s (F.N) Explorer SUV.
Bridgestone/Firestone also said it will conduct a campaign in Mexico to
reclaim about 500 of the recalled tires, which may have been released to
the Mexican replacement-tire market. None of the tires are offered as
replacements in the United States.
The newly recalled tires are equipped on up to 4,700 of GM's 2000-model
half-ton Chevrolet Suburban and GMC Yukon XL 1500 series sport utility
vehicles made at the No. 1 automaker's Silao, Mexico, plant, Brook
Lindbert, GM's director of tire-wheel systems told reporters on a
conference call. They were standard equipment on the Yukon XL and an
optional choice on the Suburban.
The tires were made during the week of April 23, 2000, after a maintenance
shutdown the previous week, the companies said. Most of the affected
full-size SUVs were sold in the United States, with another 150 sold in
Canada, GM said.
Owners will be contacted within a week, and replacements of the same type
and size will be free, the companies said. Bridgestone/Firestone said it
will pay for the recall.
The tire maker has replaced more than 90 percent of the 6.5 million
15-inch ATX, ATX II and Wilderness AT tires recalled in August.
Bridgestone/Firestone said the two recalls are unrelated.
The companies said only about 150 bad tires were made on April 24, 2000,
at Bridgestone/Firestone's Mexican plant, but a week's worth were being
recalled to be safe. The problem was discovered with the tires' skim
stock, the thin band of rubber that bands the tires' steel belts together,
the firms said.
Bridgestone/Firestone Vice President Christine Karbowiak said a small
amount of unapproved rubber material found its way into the area where the
steel cord is coated with rubber. That most likely occurred during the
shutdown.
``As soon as we became aware of the deficiency in a small quantity of
these tires, we took immediate action,'' Bridgestone/Firestone President,
Chairman and Chief Executive John Lampe said in a statement. ``We found
the problem is limited to an extremely small number of tires,
approximately 150, produced on a single day, but we are recalling the
entire week to help ensure that all these tires are off the road.''
GM and the tire maker said they are unaware of any injuries or legal
claims related to the recall. The problem was discovered after GM received
three tires from its dealers from late September through November, and
Bridgestone/Firestone's retailers returned 13 tires.
GM began covering tires under a ``Bumper to Bumper'' new vehicle limited
warranty in 1996.
In a related move, Ford said Tuesday it will now add tires to its
bumper-to-bumper warranty coverage. Previously, the world's No. 2
automaker covered all vehicle components under its warranty, except tires,
which was covered by the tire manufacturers.
However, Ford executives expressed frustration with Bridgestone/Firestone
in August, charging the tire maker took too long to provide them the data
that showed the problems with the ATX, ATX II and Wilderness tires.
Ford said administering its own tire warranty program will give it early
access to data on tire performance.
Meanwhile, consumer groups and plaintiffs lawyers continue to pressure
Bridgestone/Firestone to broaden its August recall. Consumer group Public
Citizen will release a report later this week that says millions of other
tires have the same problems that sparked the voluntary replacement of 6.5
million tires.
For months, Public Citizen and safety researchers advising lawyers suing
Firestone and Ford have been pressing for a wider recall, noting the
complaint data includes Wilderness tires made at other plants and other
sizes.
Ford and Firestone have said their analysis of the data confirms the scope
of the almost completed recall was correct.
The National Highway Traffic Safety Administration is continuing to
examine whether the recall is adequate.