ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, April 26, 1996 TAG: 9604260061
SECTION: NATIONAL/INTERNATIONAL PAGE: A-1 EDITION: METRO
DATELINE: DEARBORN, MICH.
SOURCE: From Bloomsberg Business News and Knight-Ridder/Tribune
Ford Motor Co., in the largest safety recall in industry history, said it is recalling 8.7 million vehicles in the U.S. and Canada to replace ignition switches that could cause fires.
Combined with 250,000 vehicles already recalled in Canada, the recall will total 8.95 million vehicles. The largest previous safety recall was of 8.8 million vehicles of several automakers to replace faulty seat belts made by Takata Corp.
The recall will cost an estimated $500 million, though it is unclear how much of that will be borne by Ford and how much by United Technologies Corp., which made the ignition switches.
Worried Ford owners swamped a federal safety hot line and Ford dealers Thursday with calls seeking information about the recall.
As many as 2,000 calls - twice the number normally received in a day - were taken by operators at the auto safety hot line set up by the National Highway Traffic Safety Administration.
Dealers also took calls about the recall.
``I've taken probably 10 or more in a couple of hours,'' said Shirley O'Hara, who works in the service department at Bill Brown Ford in Livonia, Mich. ``Everybody's concerned, and they have a right to be.''
Ford has agreed to reimburse consumers who own cars covered by the recall who have already had their switches replaced, typically at a cost of $50 to $100.
If you've paid for a repair, Ford suggests you wait until you receive your recall letter. Take that to your dealer, preferably with your receipt, and the dealer will reimburse you.
Ford said the recall would have ``no material impact'' on the company's earnings. ``We reserve for warranty expenses based on experience, and include a contingency for the unexpected,'' said Francine Romine, a Ford spokeswoman.
Ford said it found 2,000 incidents of fire in the vehicles, which were built between 1988 and 1993. In some cases, fires erupted hours after the vehicle had been turned off.
The Dearborn, Mich.-based automaker first noticed the problem in Canada and recalled 250,000 Canadian cars and trucks in November. Ford added another 611,000 Canadian cars and trucks to the list Thursday.
The recall comes too late for Ted Reagan, whose 1989 Crown Victoria exploded on the evening of Nov. 27 - almost four hours after he parked it in the driveway of his home in Fayetteville, Ga.
First, he heard a loud pop, then a car horn blowing.
``My wife went to the door, and it was our Crown Victoria - the entire front end of it in flames and the horn blowing,'' said Reagan, 65, a retired Norfolk Southern Corp. worker.
Their insurance company paid $6,800 for the car, plus $6,500 for structural damage to their house and another $1,500 for damage to their Ford pickup parked alongside the Crown Victoria.
In all, Ford is recalling about one-third of the 26 million cars it built between 1983 and 1993. The company said only a ``very small number'' of the vehicles were likely to have faulty ignition switches.
``They are recalling the newest vehicles, which is what the insurance companies care about,'' said Debbie Goldgehn, whose incinerated 1985 Ford Ranger was not on the recall list.
Debbie and her husband, Ed, had only basic liability insurance on their Ranger, which burst into flames at 2 a.m. in November.
With little recourse and no insurance coverage, the Goldgehns this week joined in a lawsuit that seeks class-action status.
Ford is facing eight such class actions. Most have been consolidated into one case in a federal court in New Jersey.
The recall comes after an 18-month investigation by the National Highway Traffic Safety Administration. The federal agency originally started looking at fire-prone ignition switches in Ford Escorts.
While safety recalls have become standard in the industry, and aren't frowned upon as they once were, the Goldgehns and the Reagans have been turned off by their experience with Ford.
Ted Reagan replaced his Crown Victoria with a 1993 Volvo.
``My wife told me, `No more Fords in our driveway,''' he said.
WHERE TO CALL: If you have additional questions about the recall, call Ford at (800)392-FORD. To report an ignition fire or a problem with a Ford not recalled, call NHTSA's auto safety hot line at (800)424-9393.
In the U.S. the following vehicles are involved in the recall: 1988-1990 Escort 1988 EXP 1988-1992 and early-build 1993 Mustang 1988-1992 and early-build 1993 Tempo/Topaz 1988-1992 and early-build 1993 Thunderbird/Cougar 1988-1989 Crown Victoria/Grand Marquis 1988-1989 Lincoln Town Car 1988-1991 Aerostar 1988-1991 Bronco/F-Series Light Trucks The following are being added to the recall in Canada: 1988 Escort 1988 EXP 1988, 1992 and early-build 1993 Mustang 1988-1992 and early-build 1993 Tempo/Topaz 1988, 1989, 1992 and early-build 1993 Thunderbird/Cougar 1988 Lincoln Town Car 1988 Aerostar 1988, 1989, and 1991 Bronco/F-Series Light Trucks
LENGTH: Medium: 93 lines ILLUSTRATION: GRAPHIC: Chart by AP.by CNB