January 2, 2001

Ford Adds Tires to Vehicle Warranty Coverage

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REUTERSFiled at 6:16 p.m. ET
DEARBORN, Mich. (Reuters) - Ford Motor Co. (F.N), frustrated by
Bridgestone/Firestone's handling of its massive tire recall, 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 that the tire maker took too long to provide them the
data that showed the problems with the 15-inch ATX, ATX II and Wilderness
tires.
Ford President and Chief Executive Officer Jacques Nasser said in a
statement that administering its own tire warranty program will give the
automaker early access to data on tire performance.
``A consumer-focused company listens to its customers, and they're telling
us they want us to take strong steps to ensure tire safety,'' Nasser said.
Firestone completed the bulk of the recall of 6.5 million tires in the
United States late last year. Federal officials are investigating 148
traffic deaths related to the tires, which were fitted as standard on the
Ford Explorer sport utility vehicle.
The warranty will provide for replacement of tires for defects in material
or workmanship at no charge during the vehicle bumper-to bumper coverage
period. The Ford and Mercury brands have a 3 year/36,000 mile warranty,
while the Lincoln provides a 4 year/50,000 mile warranty.
Ford's stock rose $7/8 Tuesday to close at $24-5/16 on the New York Stock
Exchange.