(Updated from 11:01 a.m. EDT)
said in a
Securities & Exchange Commission
8-K filing that it has agreed to pay some of the costs of the
tire recall and that the recall would cut its revenue and earnings,
reported. The company said it is not yet able to assess the full impact of the recall, however.
"We have preliminarily agreed to bear a portion of the costs of Firestone's recall. In addition, we have suspended production of Explorer, Mountaineer, Ranger and B-Series models for the two-week period beginning August 28, 2000, which will allow us to divert about 70,000 replacement tires for use in the recall," the Ford 8-K said. "Although we expect these actions to reduce revenues and increase costs, it is too early to assess their overall financial impact in the second half of 2000."
An 8-K form is typically used by a company to report material changes in its business.
After plummeting in recent days, Ford's stock was a bit higher this morning at $26.06.
Bridgestone announced early last month that it would recall 6.5 million Firestone tires that have been linked to dozens of fatal crashes involving sport utility vehicles and pickup trucks.
wrote about the recall in a separate