DEARBORN, Mich. (July 18, 2001)—Costs associated with recalling more than 2.5 million cars and light trucks to replace their Firestone tires dragged Ford Motor Co. $752 million into the red in the second quarter. Ford earlier announced it expected the recall of 13 million Firestone tires would result in after-tax costs of $2.1 billion.
“Our decision in May to replace 13 million potentially unsafe Firestone tires was an unprecedented action,´´ said Jacques Nasser, president and CEO. ``Although we´re disappointed it resulted in a second quarter loss, it was the right thing to do for the safety and trust of our customers.´´
Ford's loss in North America, where the bulk of the replacement action is taking place, was $1.14 billion, vs. earnings of $1.84 billion a year ago.