The Crisis
In August of 2000 the tire manufacturer Bridgestone/Firestone Inc faced a major problem with there Firestone, ATX, ATXII and Wilderness At tires. The case relate more then 14.4 million tires that put one across been installed on gaming utility vehicles. 70% of the tires are on Ford SUV and watery pickup trucks. Some of the other makes are Nissan, Toyota and Subaru. The reports are that the tires are shredding involving high heat, overloading and tires being under inflated. California, Arizona, Florida and Texas are where the most reports have been reported due to the higher heat index in the summer. Due to the lack of inventory the company decided to centralize on the states that have the hottest weather. Then they decided to do the gray states then a national recall. The faulty tires are relate to more then 1,400 complaints, 88 deaths and 250 injuries. There were no indemnity changes that lead to the crisis. They were defective tires.
Crisis Management
President and Chief Executive of Japan Yoichiro Kaizaki was seen as a star. He took over Firestone in 1991 and restructured operations, is responsible for globalizing by building plants in Asia and Europe and doubling the profits in the process. When the crisis happened he was no where to be found.
He did not counterbalance make a public appearance since he had to prefigure the recall. There is a huge management gap mingled with the U.S and Japanese. Kaizaki was unwilling to respond to the pleas of investors and the media for the explanations and reassurance that this crisis would be handled in a punctual fashion. The Japanese managers do not have a trace to the value of PR. They use the sheepish system to send extinct the low level guys who bows profusely. In October, 2000 John...
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