History Lesson Part III: Firestone

There have been several examples of public relations crises that were handled properly and did not have an overall negative effect on the company in question. At the same time, there are even more instances where companies have failed to properly manage crisis situations. The Ford/ Firestone case is an example of such a situation.

In 2000, several instances were reported in which Ford owners with Firestone tires were experiencing tire blowouts ultimately causing around 150 deaths and over 500 serious injuries. Most of the accidents involved Ford Explorers, which had a tendency to flip when their tires blew out. Not all tires were defective. Only the 15’’ ATX, ATXII, and Wilderness AT model had proven to be defective. However, Firestone suffered significant damage to its brand name as a result of the defects.

The defects were the source of the crisis, but Firestone essentially poured salt on its open wounds by managing the crisis poorly. Ford and Firestone both denied responsibility for the accidents. Ford claimed that the accidents were caused by the defective tires while Firestone claimed Ford was at fault for installing the tires improperly. Both companies essentially put the public and media in the middle of their battle. It was clear to the public that there was a problem in terms of the communications between the two companies. Additionally, Ford and Firestone implied their lack of concern for their customers when they ignored the countless deaths and injuries of their customers in order to protect their bottom line. The two companies destroyed the trust of the public by their childish bickering.

Ford and Firestone should have apologized to the public up front about the injuries and deaths sustained from the accidents claiming that an investigation would be launched in order to find the real source of the problem. Both companies should have worked together as a team to fix the problem. Ford and Firestone put their bottom line ahead of the trust and safety of their customers causing the customers to become alienated from the companies they once trusted.

While Ford and Firestone made it through the crisis, they did not do so without sustaining significant monetary and brand damage. Cooperation, concern for the publics involved, and open communication are three keys to successful crisis management. Ford and Firestone failed on all three counts.

http://www.firestone-tire-recall.com/pages/overview.html