FTS light truck tire recall could cost $80 million

July 23, 2007

Foreign Tire Sales Inc. (FTS) says its recall of up to 450,000 allegedly defective Chinese-made light truck tires could cost up to $80 million.

FTS officials estimate the company may only be able to pay 10% to 15% of the total amount. The cost of the recall, they believe, may drive the company into bankruptcy.

In the event of a product recall, "there is no 'hardship exemption' in the law," an administrator from the National Highway Traffic Safety Administration told the U.S. Senate Committe on Commerce, Science and Transportation last week.