PRESS RELEASE


FOR IMMEDIATE RELEASE
Contact: Ralph K. Durstein, Deputy Attorney General
Consumer Protection Unit
Phone: (302) 577-8510
Date: December 20, 2002



Attorneys General Announce $51.5 Million Nationwide Settlement Agreement with The Ford Motor Company

(Wilmington, DE): Attorney General M. Jane Brady, today announced that 
Delaware, and 52 states and territories, have settled with The Ford Motor 
Company to resolve allegations of deceptive trade practices relating to the 
sales and advertising of Ford SUVs. 

The states alleged that Ford failed to disclose a known safety risk 
concerning tire failures with certain Firestone ATX and Wilderness AT tires 
which were original equipment on some Ford Explorer and Mercury Mountaineer 
SUVs manufactured from 1990 to 2001. The states also alleged that Ford's 
advertising misled consumers as to the safe use of Ford SUVs, and that 
certain aftermarket tires sold through Ford's "Around the Wheel" program were 
the same tires as the tires that came equipped on Ford SUVs when that was not 
true. Ford denied any wrongdoing.


Under the settlement agreement, Ford agrees to: 

• Refrain from any misrepresentations about the cargo capacity, safety and 
handling characteristics of their SUVs, or the purpose of any recall or 
recommended inspection. This includes prohibiting Ford from using the term 
"car-like" in advertising with respect to the steering and handling of its 
SUVs.
• To have reliable scientific evidence to substantiate any representations 
about vehicle safety, performance or durability.
• To provide safety information about cargo loading and vehicle handling to 
each consumer who buys a Ford SUV and provide Spanish language owners' guides 
upon request.

Ford also agreed to undertake a number of consumer education initiatives that 
it will launch in the coming year and to abide by all state and federal laws 
governing SUV safety, including a federal regulation that requires 
manufacturers of SUVs with a wheel base under 110 inches to alert purchasers 
that those vehicles have a higher possibility of rollover than other vehicle 
types. Ford also will advise consumers of steps they can take to reduce the 
potential for rollover or rollover-related injuries. 

Ford agreed to pay a total of $51.5 million to the states, the District of 
Columbia, Puerto Rico, and the Virgin Islands. Of that, $30 million will be 
used to present a nationwide consumer education campaign on SUV safety. Each 
of the jurisdictions, including Delaware, will receive $300,000 for consumer 
protection and enforcement initiatives. Ford already has spent approximately 
$2 billion to replace tires in the 53 jurisdictions.

"Consumers have the right to expect safe products and accurate 
representations from the companies they deal with," said Brady. "Ford 
rightly agreed to take steps to raise consumer awareness about SUV safety."

The joint settlement agreement comes a year after the states entered into a 
$51.5 million nationwide settlement with Bridgestone/Firestone, Inc., related 
to the advertising and sale of tires that had high rates of tread 
separations. Bridgestone/Firestone manufactured the tires specifically for 
use as original equipment on Ford Explorers and Mercury Mountaineers. 

The states alleged that Ford continued to use the tires even after the 
company knew the tires had an unacceptably high failure rate and that using 
the tires made Ford's SUVs more likely to roll over. The states also alleged 
that Ford advertising exaggerated the safe loading capacity and 
maneuverability of Ford SUVs, and that Ford deceptively advertised 
aftermarket tires as original equipment tires. 

Today's announced settlement does not preclude an individual's right to 
assert legal claims against Ford.

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