Reference no: EM132995592

The Firestone Tire Company issued a recall for all tires issued on a certain brand of Ford's sport utility vehicles. The tire treads on some SUVs separated during use, which could cause a fatal accident because the defect caused vehicles to roll over. In the beginning, Firestone denied it had a tire problem, stating that Ford had incorrectly matched its SUVs with the wrong brand of tires. It also suggested that the shock absorbers might have been rubbing against the tires, causing the defect. Firestone soon recalled the tires because the company received more and more pressure from government and consumer advocacy groups. Interestingly, all of the defective tires were manufactured at the same tire factory, and the company soon shut down that facility. Information was soon found that Firestone had recalled the identical type of tire in South America and had already settled a lawsuit for an accident caused by the tread defect. Discuss each of the following factors in relation to this case: quality, inventory, ethics, supply chain visibility, profitability, and customer loyalty.