So while the companies are faced with a current flood of bad news, they also must acknowledge the storm clouds on the horizon. Then there is the regulatory front. Firestone or Ford face potential fines for failing to recall the tires sooner and they also face potential penalties for withholding documents. The real regulatory problem for Ford and Firestone may come down the road, in the form of more recalls and safety warnings by an agency angered by the actions and reactions of the companies. These additional recalls and warnings obviously could and will affect sales of all Firestone tires and perhaps Ford vehicles as well, which means less profit for the two companies to work with as they fight the legal and political battles above.
Few people expect such charges ever to be brought or, if brought, to succeed.
But even this problem area cannot be given short-shrift by the companies. Some of the Venezuelan investigators reportedly have been in touch with some of the lawyers who either already have sued the tire maker or are about to. If these contacts are indeed occurring, they could provide a significant boost to the class-action and product liability lawsuits here, by clueing in plaintiffs' attorneys to where to look for potentially incriminating documents or willing witnesses. By Andrew Cohen 2000, CBS Worldwide Inc., All Rights Reserved. Viacom Internet Services Inc. All Rights Reserved.