Breaking Tradition, Ford Adds Tires to Vehicle Warranty Coverage

Ford Motor Co., whose sales were hurt by a Bridgestone Corp. recall of 6.5 million Firestone tires in August, added tires to warranty coverage on new cars and light trucks in North America starting with 2001 models.

The move, which includes Ford, Lincoln and Mercury models and covers repairs starting Monday, ends a century-old system under which tire makers provided the tire warranty, the world’s second-largest auto maker said. General Motors Corp., the biggest auto maker, has had warranty coverage for tires since 1996.

Consumers are “telling us they want us to take strong steps to ensure tire safety,” Ford Chief Executive Jac Nasser said in a statement. “We now stand behind every component on our vehicles. Administering our own tire warranty will also play a role in our ‘early warning system,’ providing early access to data on tire performance.”

Bridgestone’s U.S. unit, Bridgestone/Firestone Inc., recalled the 6.5 million ATX, ATX II and Wilderness tires Aug. 9 in the midst of a U.S. investigation of tire-tread separation. U.S. regulators have said the tires, most of which were on Ford Explorer sport-utility vehicles, may be involved in as many as 148 deaths. U.S. sales of Explorers fell 16% in October and 12% in November from a year earlier.

Bridgestone wasn’t immediately available to comment.

Adding the warranty coverage “gives Ford the open door to come in and examine their suppliers’ data on tires,” said Richard Hilgert, an analyst at Fahnestock & Co., who has a “strong buy” rating on the auto maker’s shares. “It will help bolster consumer confidence in the Ford brand.”

The move will help clarify the link between tires and vehicle safety, said Joan Claybrook, president of the consumer-advocacy group Public Citizen.

“The way tires perform affects the safety of the vehicle, as is so evident with the Explorer,” Claybrook said. “Now the manufacturer of the car, who sets the tire specifications anyway, will be responsible for the way they perform.”

Ford’s warranty will provide for replacement tires for defects in materials or construction at no charge for three years or 36,000 miles for Ford and Mercury vehicles, and four years or 50,000 miles for Lincolns, said spokesman Mike Vaughn.

Vehicle buyers remain eligible for any tire maker coverage beyond Ford’s warranty, the auto maker said.

Ford in September said it would work with the tire industry to develop an early warning system to detect tire failures. The Dearborn, Mich.-based auto maker said then that it didn’t realize the scope of the problem with Firestone tires until it was able to examine the tire maker’s claims data. Ford said it requested the Firestone data on four separate occasions starting June 6 before getting the information on July 28.

Bridgestone has said problems with the Explorer’s design contributed to deaths linked to tire-tread separation accidents. Ford has maintained that the accidents were a result of tire issues, not problems with its vehicles.

The auto maker said in October that the tire recall cost it about $500 million in the third quarter and that it didn’t expect the total cost to be much higher.

Ford last month said it wanted to settle some 200 personal-injury claims brought on behalf of people hurt or killed when Explorers rolled over after tire-tread failures.

Ford shares rose 88 cents to close at $24.31 on the New York Stock Exchange. They have fallen 18% since the Firestone recall was announced.