1. Product Recall 1 What: Ford Steering Column Lower Bearing Recall Date: August 26, 2013 [1] Why: The lower intermediate shaft could corrode resulting in the lower column bearing to separate. This can cause a loss of steering which increases the risk of a crash. [1] Incidents: According to the Office of Defects Investigations (ODI) complaints and Ford complaints and warranty, “22 incidents of steering separation … that may be related to the lower intermediate shaft defect condition” were identified in the recall region, with Ford identifying 13 incidents outside the recall region. [1] Number of Units Sold: 335,000 [2]. Vehicles Affected: “Ford Crown Victoria, Mercury Grand Marquis and Lincoln Town Car models from 2005 through 2011... in effect in 22 states and the District of Columbia.” [3] ETM627 Christi Lambertson – Ford Steering Column Lower Bearing 30 Nov 2014

2. Technical Issue: Root Cause: The lower intermediate shaft could corrode. Internal Consequences: If corroded severely, the lower intermediate shaft swing link joints can stiffen. Because of the forces from this stiffening on the upper intermediate shaft, the shaft can collapse. [1] Failure: If the upper intermediate shaft collapses, the column lower bearing may separate and cause a loss of steering control. With no steering control, a crash is imminent. [1] ETM627 Christi Lambertson – Ford Steering Column Lower Bearing 30 Nov 2014 2

3. Management Issues 3 Recognition of Problem: The first complaint received by the National Highway Traffic Safety Administration (NHTSA) describes an incident on May 18, 2010 and involves a car where the steering column began to separate. However, this complainant also addresses that they have seen separation before. It was not until incidents involving the steering column of police cruisers, a year before the recall, that an investigation by NHTSA was opened on April 26, 2013. [4] Speed of Response: For Ford to look at this issue, once enough incidents were reported that would warrant a review, to the point of recall took less than one year. In that time they recognized a problem, found the cause, developed a fix, and organized a recall. Responsibility: Not only did Ford take responsibility and issue a recall, but they also recently announced another recall after investigating a reported accident. They found that 38,600 vehicles were potentially repaired improperly during the original recall. [2] ETM627 Christi Lambertson – Ford Steering Column Lower Bearing 30 Nov 2014

4. Impact of Recall 4 Legal Consequences: No lawsuits pertaining to the steering capability of the Ford Crown Victoria, Mercury Grand Marquis, or Lincoln Town car were found. Furthermore, Ford cooperated with NHTSA in all aspects of the recall. Reputation: This recall did not affect the reputation of Ford, especially for these three car models. These models are favored by fleet users for their “roominess, legendary ruggedness and relative simplicity.” In fact, the replacement of these now discontinued models was a concern for fleet users. [5] Sales: The Mercury brand was shut down in 2010. In 2011, the Ford Crown Victoria and Lincoln Town Cars discontinued manufacturing. These models were primarily used by police officers and taxi services, and the sales figures did not justify the production line. [5] ETM627 Christi Lambertson – Ford Steering Column Lower Bearing 30 Nov 2014

5. References 5 [1] NHTSA. (n.d.). Steering Column Lower Bearing May Seperate. Retrieved January 1, 2014, from http://www-odi.nhtsa.dot.gov/owners/SearchSafetyIssues [2] JENSEN, C. (2014, November 4). Ford, Nissan and Toyota Issue Recalls. Retrieved November 21, 2014, from http://www.nytimes.com/2014/11/05/automobiles/ford- nissan-and-toyota-issue-recalls.html?_r=0 [3] Jenson, C. (2013, August 31). Ford Recalls 370,000 Sedans. Retrieved November 21, 2014, from http://wheels.blogs.nytimes.com/2013/08/31/ford-recalls-370000- sedans/ [4] Hirsch, J. (2013, September 3). Loss of steering in police cars triggers Ford Crown Victoria recall. Retrieved November 21, 2014, from http://www.latimes.com/business/autos/la-fi-hy-ford-recalls-crown-victoria-police- 20130903-story.html [5] Valdes-Dapena, P. (2011, September 15). Last Ford Crown Victoria rolls off the line. Retrieved November 26, 2014, from http://money.cnn.com/2011/09/15/autos/last_crown_victoria/ ETM627 Christi Lambertson – Ford Steering Column Lower Bearing 30 Nov 2014