Exhibit 99.1
PRESS CONFERENCE STATEMENT DATED AUGUST 31, 2000
Since we first found out about the Firestone tire problem,
we have been guided by three principles. First, we are doing
whatever it takes to guarantee our customers' safety. We're
committed not only to their physical safety but also to
making sure they feel secure when driving a vehicle on tires
that are safe. Second, we are working hard to find and
replace bad tires with new good tires. That includes making
sure that we understand the scope of the problem and make
every effort to find out what the root cause of the problem
is. Third, we will continue to be open about any data,
statistics and information that we have as soon as we know
we have a problem.
One of the most difficult things in dealing with this type
of problem is that we don't know all the facts, and it takes
some time to gather and analyze all the information. And we
want to be very careful not to say anything that is not
supported by the facts or say something based on poor
information that turns out to be incorrect later.
Because I don't want there to be any question about our
objective to make everything we know and what actions we're
taking public, I have decided to personally testify at the
congressional hearings next week. When it appeared this was
purely a technical matter, I was comfortable letting our
technical experts testify. It's clear some people want to
broaden this tire problem into a larger issue, so I want to
testify personally.
Now, let's talk about where we are in the tire recall
process. First, this is a tire and not a vehicle issue.
We have a half-million vehicles with tires from other
manufacturers, and they haven't experienced these problems.
We believe that we know which tires are the problem. We
have made a detailed analysis of the Firestone data (which
is the only comprehensive data covering this matter), and we
have made our analysis available to our customers, to the
public, to Firestone, to the media and to NHTSA.
What we don't know is why the tires fail. We are working on
that and so is Firestone. But it is important to note that
once we found out which tires were bad and which were good,
we took action. We did not wait to find the cause of the
problem before taking action.
Thus far, we have replaced about 1.5 million tires -- about
22 percent of the total population of affected tires -- and
we are working with other tire manufacturers to speed up the
availability and replacement timing.
<PAGE>
There have been several other stories in the press that I
would like to address.
On Venezuela: Three and a half months ago, we asked
Firestone to replace tires in Venezuela. When they didn't
act, we did. We are replacing all the Firestone tires on
Ford Explorers and certain light trucks. Today we
understand that a Venezuelan government official is asking
Firestone to formally recall those suspect tires on Ford and
other manufacturers' vehicles. We agree with that action.
It's been reported that this official has accused Ford
Venezuela of lying. We did not lie to the Venezuelan
government. Where there is confusion, we will continue to
meet with the government to clear up any misunderstandings.
On Saudi Arabia: This problem first began to appear in
Saudi Arabia. About a year ago, we asked Firestone to
replace the tires on about 7,000 of our products. They
wouldn't act, so we did. We replaced the tires.
The bottom line is that through all this, we didn't hide
anything, and we actively looked to see if there was
evidence of the same problem in the U.S. In every case, we
were ahead of Firestone and ahead of government action.
On Florida: It's been reported that a representative of the
Florida Attorney General's office will seek information
about the tire issue from us and Firestone. My only
response is that as soon as we receive the request, we will
give them all the information we have.
Prior to next week's hearings, we will make available to the
public and to the Congressional committee the documents that
will detail what we knew, when we knew it and what we did
about it.
I want you to know that I am sorry that these defective
tires are on our vehicles, and I am depressed by the
resultant anxiety, injuries and deaths. Our mission remains
to replace bad tires with good tires as quickly as possible.
It's as simple and as complex as that.
There has been another, unrelated item in the news
concerning a California class action lawsuit relating to an
ignition component called a Thick Film Ignition module. The
issue in the case is whether some of our vehicles from 1983
to 1995 should have had the ignition component mounted in
another location on the engine. All government data -- 18
years' worth -- prove that our vehicles are as safe or safer
than other vehicles, and NHTSA investigations of this matter
found no safety defect.
<PAGE>
The judge in California criticized us for responses made to
NHTSA 13 years ago. It's true that we and NHTSA disagreed
about what was being asked for back then, but we have since
worked out our differences with NHTSA. We strive to be open
and honest with federal regulators. From a legal
standpoint, the judge has issued the ruling on a preliminary
basis, and we will appeal, and we expect to prevail.
