Helen PetrauskasHelen Petrauskas

Vice PresidentVice PresidentEnvironmental & Safety EngineeringEnvironmental & Safety Engineering

- 3 -

Actions We Have Taken Replaced tires in Middle East (July 1999),

Southeast Asia (Feb 2000), and Venezuela and adjacent countries (May 2000)

At the same time took action to determine if same issue existed in North America» Requested Firestone to check U.S. database and

perform tire testing» Reviewed NHTSA hot line, as well as all internal Ford

databases» With Firestone, undertook study of worn tires from

U.S. Southwest Found no evidence of tread separation

- 4 -

Actions We Have Taken Requested and analyzed data from Firestone Supported Firestone recall decision

- 5 -

Actions We Have Taken The tire industry is increasing production of 15-

inch tires by more than 250,000 tires per month by the end of September

Engaged 3,100 Ford and Lincoln-Mercury dealers to perform tire replacements

Suspended Explorer and Ranger production at three assembly plants: Edison, St. Louis, and Twin Cities

Looking at increased use of 16-inch tires to free up 15-inch tires

- 6 -

Actions We Have Taken Major effort to communicate with customers

» Opened additional call center

» Website

» Series of newspaper ads

Full cooperation and disclosure to NHTSA

Tom BaughmanTom Baughman

Engineering DirectorEngineering DirectorNorth American TruckNorth American Truck

- 8 -

Claims for Firestone Tires by Tire Size

2030

137 82 81 54 52 31 310

500

1000

1500

2000

2500

P235/75R15 31x10.5R15 30x9.50R15 P235/70R16 P265/75R16 33x12R15 P255/70R16 P265/75R15F-SeriesRanger

ExplorerRanger

F-SeriesBronco

ExplorerF-Series

Expedition

ExplorerF-SeriesRanger

F-SeriesBronco

Firestone Property Damage and Injury Claims and Lawsuits Submitted Pursuant to NHTSA InquiryTire Sizes with More Than 30 ClaimsTires with Ford Original Equipment Application Noted

- 9 -

Claims for Firestone P235/75R15 ATX and Wilderness Tires by Type of Claim

1365

7710

412

16659 41 2

64

1864

0

400

800

1200

1600

2000

Total TreadSeparation

Blow Out Other Unknown

ATX

Wilderness

Firestone Claims Data

- 10 -

Tread Separation Claims for Firestone Tires by Tire Size

71 55 19 15 15 14 7 725 51224

1424

0

500

1000

1500

P23

5/75

R15

31x1

0.50

R15

30x9

.50R

15

P

235/

70R

16

33

x12R

15

32x1

1.50

R15

P22

5/75

R15

P26

5/75

R16

P26

5/75

R15

P20

5/75

R15

P22

5/70

R15

P25

5/70

R16

P25

5/85

R16

ExplorerRangerF-SeriesBronco

F-SeriesRanger

F-SeriesRanger

ExplorerF-SeriesExpedition

F-SeriesBronco

Firestone Claims DataTire Sizes with at least 5 Tread Separation ClaimsTires with Ford Original Equipment Application Noted

- 11 -

Tread Separation Claims for Firestone P235/75R15 ATX and Wilderness Tires by State

0

50

100

150

200

250

300

350

400

TX

AZ

CA FL

LA NV

MS

GA

OK

AL TN

UT

NC

AR SC

KS

MO

KY

NM

UN

K IN NY

CO

PA

MN WI

VA IA OR

OH MI

NJ IL ND HI

MA CT

WY

WA

77%

Firestone Claims Data

- 12 -

Tread Separation Claims Rate for Firestone P235/75R15ATX and Wilderness Tires for 1996 Tire Production Year

248

22

0

50

100

150

200

250

300

ATX Wilderness

Cla

ims

Ra

te (

pp

m)

11 X

Firestone Claims and Production Data

- 13 -

Tread Separation Claims Rate for Firestone P235/75R15 Wilderness Tires by Tire Production Year and Plant

34.1

3.31.01.0 0.0 0.0

66.3

6.6

0

10

20

30

40

50

60

70

1996 1997 1998 1999

Tire Production Year

Cla

ims

Ra

te (

pp

m)

Decatur Plant

Other Plants

Firestone Claims and Production Data

- 14 -

Tread Separation Claims Rate for Firestone P235/75R15 ATXby Time in Service at Claim, Tire Production Year, and Plant

0

100

200

300

400

500

600

700

New 1 2 3 4 5 6 7 8 9 New 1 2 3 4 5 6 7 8 9

Time in Service at Claim (in years)

Cla

ims

Ra

te (

pp

m)

1991

1992

1993

1994

1995

1996

1997

1998

1999

Production Year

Decatur Plant Other Plants

Firestone Claims and Production Data

- 15 -

Tread Separation Claims Rate for Firestone P235/75R15 Wildernessby Time in Service at Claim, Tire Production Year, and Plant

0

100

200

300

400

500

600

700

New 1 2 3 4 5 6 7 8 9 New 1 2 3 4 5 6 7 8 9

Time in Service at Claim (in years)

Cla

ims

Ra

te (

pp

m)

1991

1992

1993

1994

1995

1996

1997

1998

1999

Production Year

Decatur Plant Other Plants

Firestone Claims and Production Data

- 16 -

Tread Separation Claims Rate for Firestone P235/75R15 Wildernessby Time in Service at Claim, Tire Production Year, and Plant

0

10

20

30

40

50

60

70

New 1 2 3 4 5 6 7 8 9 New 1 2 3 4 5 6 7 8 9

Time in Service at Claim (in years)

Cla

ims

Ra

te (

pp

m)

1991

1992

1993

1994

1995

1996

1997

1998

1999

Production Year

Decatur Plant Other Plants

Firestone Claims and Production Data

- 17 -

Tread Separation Claims Rate for Firestone 15-inch and 16-inch Tires

Production Years 1995-1999 and Claims Years 1995-1999

14.60.0

18.81.2 2.3

241.3

0

50

100

150

200

250

P235/75R15ATX

P235/75R15Wilderness AT*

P255/70R16Wilderness AT

Cla

ims

Ra

te (

pp

m)

Decatur

Other Plants

* P235/75R15 Wilderness AT 15-inch production began in 1996

- 18 -

Competitive SUVs and Pickup Trucksat 26 psi Recommended Inflation Pressure

On P235/75R15 Tires (same exact size as

Bridgestone/Firestone recall)= 4

On 70 Series P235-15 Tires = 3

On sizes similar to Bridgestone/Firestone

recall tire= 9

16Models

- 19 -

Passenger Car and Light TruckOccupant Fatality Rates

0

1

2

3

4

5

1960s 1970s 1980s 1990s

Passenger Cars

Light Trucks

N/A

Fat

ality

Rat

epe

r 100

Milli

on V

ehicl

e M

iles o

f Tra

vel

Source: Department of Transportation Data

- 20 -

Fatality Rate Comparison

1.6

1.3

Passenger Cars Compact SUVs

Fa

tali

ty R

ate

per

100

Mill

ion

Veh

icle

Mile

s of

Tra

vel

Source: Department of Transportation Data

- 21 -

Fatalities by Crash Mode

Front41%

Side32%

Rollover24%

Rear3%

Passenger Cars Compact SUVs

Front24%

Side10%

Rear2%

Rollover64%

Source: Department of Transportation Data

- 22 -

Ford Internal Safety Guidelines

Frontal and Offset Frontal Impact Resistance to Rollover Occupant Restraints Interior Side Impact Protection Side Intrusion Dynamic Side Impact Rear Impact Roof Crush Resistance ABS Fuel System Performance

- 23 -

Fatality Rate Comparison

1.6

1.3

1.0

PassengerCars

All CompactSUVs

Explorer

Fat

alit

y R

ate

per

100

Mill

ion

Veh

icle

Mile

s of

Tra

vel

Source: Department of Transportation Data

- 24 -

Fatality Rate Comparison

All Accident Types Rollover Accidents

ExplorerOther

CompactSUVs

-28%

-26%

Fat

alit

y R

ate

per 1

00 M

illio

n V

ehic

le M

iles

of T

rave

l

ExplorerOther

CompactSUVs

Source: Department of Transportation Data

- 26 -

Tire Capacity Explorer 4x4 5.0L, P235/75R15 Tire at 26 psi

4,250

5,640

0

1000

2000

3000

4000

5000

6000

7000

8000

Base Curb Weight Max Gross Axle WeightRating

Po

un

ds

pe

r A

xle T&RA Adjusted Load Cap. (6,372 lbs)

T&RA Load Capacity (7,012 lbs)

- 27 -

Load Carrying Capacity by AxleExplorer 4x4 5.0L, P235/75R15 Tire at 26 psi

2,367

1,883

2,850 3,000

0

500

1000

1500

2000

2500

3000

3500

4000

Front Rear Front Rear

Po

un

ds

pe

r A

xle

Base Curb Weight4,250

Max Gross Axle Weight Rating (GAWR)

T&RA Adjusted Load Cap. (3,186 lbs)

T&RA Load Capacity (3,506 lbs)

- 28 -

Explorer Shock Damping

0

500

1000

1500

2000

2500

3000

3500

4000

0 50 100 150 200

Shock Rebound (cycles per minute)

Dam

ping

For

ce (N

)

Base

Australian

WashboardSmooth Roads

- 29 -

Tire Design Tradeoffs

A High speed durability, load capacity, fuel economy traction & seat on rim

B Ride, comfort, noise, vibration & harshness

C Stability & handling

* P235/75 R15

Pressure (psi)

Impl

icat

ions

/ D

esir

abil

ity

C

B

A

Lower

Higher

20 30 35

TRA Range *

26

26 Optimum

acceptable

HigherLower