Ford Leadership Shake-Up Coexists with Latest Recall By Michelle Logsdon - October 31, 2001Ford Motor Co. is in the news again recalling millions of its 2000/2001 cars and trucks because a faulty switch on the windshield wipers can overheat and catch on fire. The recall is made in the same breath as the announcement that board chairman William Clay Ford Jr. is replacing Chief Executive Officer Jacques Nassar.
The leadership shake-up is the result of declining revenues and a series of recalls and lawsuits Ford has faced because of defective parts or faulty construction. On Oct. 26 the company agreed to settle a class-action lawsuit over flawed ignition systems that were linked to 11 deaths and 31 injuries.
The settlement was reached shortly after Alameda County Superior Court Judge Michael E. Ballachey, in an unprecedented move, ordered Ford to recall nearly 2 million of its vehicles. Because of the settlement the recall is void.
The ignition device was apparently mounted too close to the engine block causing the part to overheat and the vehicle to stall. Ford disagrees that the part was defective and admits no wrongdoing in the ignition settlement.
Last summer, Ford was embroiled in the recall of 6.5 million Bridgestone/Firestone tires that were linked to dozens of fatal accidents involving Ford Explorer sport-utility vehicles (SUVs).
According to Ford’s spokesman Mike Vaughn, this latest recall has caused more than 40 fires. None of those fires led to accidents or injuries.
The recalled vehicle models include Ford Taurus, Focus, Expedition, Excursion and F-series pickups; the Mercury Sable; the Lincoln Continental, the Lincoln Town Car and the Lincoln Navigator. More than one million vehicles are being recalled, the majority of which were produced between February and September 2000. |