Bridgestone Firestone to Pay Ford $240M
By Rose French. Associated Press

10/12/2005 - Bridgestone Firestone North American Tire has agreed to pay $240 million to Ford Motor Co. to settle claims related to the tiremaker's 2000 recall of defective tires, Bridgestone Firestone said Wednesday.

Bridgestone Firestone, the North American unit of Japan's Bridgestone Corp., and Ford reached a settlement that will help cover the costs of the automaker's 2001 tire-replacement program, which followed the tire recall, said Saul Solomon, vice president and general counsel of Nashville-based Bridgestone Firestone.

"We view this $240 million as effectively settling all disputes between the two companies. We've resolved our differences in an amicable manner," said Paul Wood, spokesman for Ford.

At least 271 people were reported killed and hundreds more injured in accidents involving Firestone ATX and AT tires, and the maker recalled 6.5 million of them.

Bridgestone has spent about $440 million on recall-related costs, according to Chris Karbowiak, vice president of public affairs of Bridgestone Americas.

Bridgestone has blamed the accidents on defects in some Ford vehicles, while Ford maintains the tires were entirely at fault.

Bridgestone said it severed business ties with Ford that had lasted nearly half a century in May 2001. Ford then began replacing more than 10 million Firestone tires free of charge for its own customers, the automaker said.

In July 2003 Bridgestone announced a settlement of a class action lawsuit involving Firestone tires that were part of the company's August 2000 recall. The agreement resolved a number of class action lawsuits filed against Bridgestone involving customers who did not suffer personal injury or property damage, company officials said.

Some lawsuits against Ford and Bridgestone are still pending, though officials at both companies were unable to specify the exact number.