Image source: Flickr, Bill Selak
Small Problem Morphs Into Larger One
Ford had to recall over eight million cars in 1996 when auto-workers installed defective ignition switches during the 1980s. The switches caused overheating that sparked a fire in the steering columns. The problem extended to such lines as the Escort, Mustang, Grand Marquis, and Topaz.
The ignition issues caused over 2,000 fires and roughly 20 injuries. Though not as bad as the 1980 recall, Ford’s 1996 incident was among the worst defects in auto history. Critics also contend that Ford should have issued additional recalls.
The recall cost Ford a total of $280 million. Additionally, lawyers claimed that Ford knew about the ignition problem before 1988. Ford remodeled the ignition switches in 1992, and execs maintained that the old switches were moderately safe.