Moreover, tire makers are notoriously conservative, resisting change as long as possible out of fear they might invest in the wrong innovations, which could be an expensive mistake in a low-margin business. That leaves raw materials, which account for about half the cost of a tire, as one possible place to fiddle. Substituting cheaper compounds for more durable but costlier ones, even when they save only a few pennies a tire, could quickly add up to millions of dollars, though there is no evidence that tire makers have taken such a step. Tire design is another area where money could be saved. But it is unknown whether that would have avoided the tread separation problems encountered by the recalled Firestones.
Problems can occur when the redesigning or substitutions get pushed too far.
One tire industry executive not connected with Firestone admits that his own company has made that mistake. The executive notes that low-priced tires, for which such cost pressures are greatest, are the most common targets of recalls. This entire edition is compiled in Mumbai by The Indian Express Online Media Limited, a division of The Indian Express Group of Newspapers. Managed by The Indian Express Online Media Limited and hosted by CerfNet.