Exhibit 99.2
STATEMENT OF JAC NASSER
CHIEF EXECUTIVE OFFICER
FORD MOTOR COMPANY
SEPTEMBER 6, 2000
Prepared for Delivery
Embargoed Until Commencement of Testimony
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Good afternoon, Chairman Tauzin, Chairman Upton, and Members of the
Committee. I appreciate the opportunity to be here. This has been a complicated
and sad situation and we have all been very concerned.
Before I discuss the Firestone recall, I would like to say a word about our
company. Ford has a distinguished heritage and a bright future - it is an
American icon. The strength of Ford has always been its employees and loyal
customers.
Thirty-two years ago, I joined Ford Australia as a trainee. I never dreamed
that someday I would lead Ford Motor Company and represent the Ford team.
I am here because I know that you and the public have questions about the
tire recall. I am here to answer those questions, and I will remain here until
you are satisfied.
Now, let's get to the heart of the issue. When did Ford know that there was
a problem with the Firestone tires? What have we done about it?
And, what are we going to do in the future?
First, when did Ford know there was problem with the Firestone tires.
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I have said this before, Mr. Chairman, but it's worth repeating:
Because tires are the only component of a vehicle that are separately
warranted, Ford did not know that there was a defect with the recalled tires
until we virtually pried the claims data from Firestone's hands and analyzed
it. It was only then -- a few days before the recall was announced -- that Ford
engineers discovered conclusive evidence that the tires were defective.
We then demanded that Firestone pull the tires from the road.
Looking back, the first signs of a problem developed in Saudi Arabia when
our dealers reported the complaints. We immediately asked Firestone to
investigate. Firestone did so and concluded that the tread separations were
caused by improper maintenance and road hazards unique to that environment. We
were still troubled.
We then asked Firestone to conduct all sorts of tests on the tires. After
each and every test, Firestone reported that there was no evidence of a defect.
This did not satisfy our Saudi customers. So about a year ago, Ford replaced the
Firestone tires.
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At the same time, we wanted to know if our U.S. customers were having tire
problems. In early 1999, we asked Firestone to review its data and we were
assured that there was no problem in this country. Our data, as well as
government safety data, didn't show anything either. We still felt we should do
more and asked Firestone for one more evaluation of tires in Texas, Nevada and
Arizona. Firestone reported back, as before, that there was no defect.
My purpose is not to finger point, but simply to tell you that at each step
Ford actively took the initiative to uncover this tire problem and find a
solution.
But, it was not until we saw Firestone's confidential claims data that it
became clear what needed to be done.
If I have one regret, it is that we did not ask Firestone the right
questions sooner.
What have we done so far.
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We started by insisting that Firestone recall the bad tires. I then made a
commitment to our customers that Ford would dedicate all of its resources to
support the Firestone recall. In just three weeks, 1.7 million tires have been
replaced. We also worked closely with the rest of the global tire industry to
increase tire availability, and I suspended production at three of Ford's plants
to free up more replacement tires.
We are striving to replace bad tires with good tires as quickly as possible.
Looking Forward, What Are We Going To Do
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Mr. Chairman, there are almost 3 million Goodyear tires on Ford Explorers
that have not had a tread separation problem. So we know that this is a
Firestone tire issue. However, we all must prevent this from ever happening
again.
Today, I am announcing that Ford will implement two new reforms that we
feel are critical.
o First, we will work with the tire industry to implement an "early warning
system" to detect the first signs of tire defects on vehicles already on the
road. This early warning system must use comprehensive real world data that - we
now know -- is so critical to spotting defect patterns.
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o Second, because our products are increasingly sold around the world, we
will advise US safety authorities of safety actions taken in overseas markets,
and vice versa. From now on, when we know it, so will the world.
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I have received hundreds of letters from Ford owners and I have spoken
personally with many of them. And, believe me, some of those conversations have
been difficult.
I want you and all the Ford owners to know that we at Ford will not rest
until every bad tire is replaced. And I will do everything in my power as
President of Ford Motor Company to maintain the confidence and trust of our
customers. Thank you, and I would be pleased to answer your questions.
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