The Toyota Recall Crisis: More Than a Re-TREAD

Ten years ago, the Ford-Firestone Tire recall resulted in the most sweeping amendments to the Motor Vehicle Safety Act since it had been enacted in 1966. Congressional hearings had elicited evidence that Ford knew of tread separations resulting in fatal rollovers in the U.S. and overseas, had conducted tire “replacement campaigns” on Ford Explorers in Venezuela and Saudi Arabia, but had not done so in the U.S. Nor had Ford informed the National Highway Traffic Safety Administration (NHTSA) of the overseas campaigns, the fatality and injury claims, warranty claims, and consumer complaints stemming from tread separation. The Safety Act did not require that Ford do so. Instead, the Act obligated Ford and other auto manufacturers to notify NHTSA when they determined that a safety defect exists, but there was no mandate for them to share information about possible defects before making that determination.