November 2, 2000
By THE ASSOCIATED PRESS
Filed at 6:41 p.m. ET
NASHVILLE, Tenn. (AP) -- Bridgestone/Firestone Inc. will give warranties and money-back guarantees with more of its tires to try to regain consumer confidence lost in the furor over fatal accidents linked to Firestone tires.
Currently, 53 lines of tires are covered by the company's limited warranty program and 30-day money-back guarantee. That number will be increased to 97, covering almost all Bridgestone and Firestone passenger and light truck tires sold in stores, the company said.
The measure, announced during a meeting in Las Vegas of Firestone dealers, was seen by analysts as a step in the right direction, but still could prove insufficient to lure customers back.
``They've still got a monstrous way to go to turn the brand around,'' said
James Bell of Lippincott
Under the warranty program, the company will replace tires that become unusable ``for any reason attributed to workmanship or factory defect'' for the first three years of ownership, the first four years after manufacture or until the tire tread depth is worn to 1/16 of an inch -- whichever comes first.
Under the money-back guarantee, unsatisfied customers can return the tires for up to 30 days and get a refund.
``Customers want to know their tire investment is protected,'' and John Gamauf, vice president of consumer dealer tire sales.
Corporate image consultant Anne Klein said this is a sign the company is confident in its products; otherwise it wouldn't make such a financial commitment
But Clive Chajet said Bridgestone/Firestone's reputation may be irreparably damaged.
``All other things being equal, I can't think why you would want to buy a Firestone tire.''
The Nashville-based company recalled 6.5 million ATX, ATXII and Wilderness AT tires in August because of problems with tread separation cited in numerous accidents, mostly on Ford Explorers. According to federal investigators, at least 119 people have died in accidents and some 500 have been injured.
The National Highway Traffic Safety Administration issued a consumer advisory on an additional 1.4 million tires, and the company has agreed to replace them free for any customer who asks.
Meanwhile, a federal judge in Indianapolis who is overseeing the consolidation of pretrial work in more than 60 lawsuits filed against Ford and Bridgestone/Firestone has appointed a special master to assist in organization and scheduling.
Attorneys in the case will share the cost of Debra McVicker Lynch's hourly fees up to $112,500 per year, under the order issued Wednesday by U.S. District Judge Sarah Evans Barker.
Barker also set the first two status conferences for attorneys for Nov. 17 and Dec. 6, and asked for lawyers to submit brief summaries in the cases by Nov. 9.