DETROIT (May 31)—Administrative, advertising, labor and other overhead costs will account for more than half of the $3 billion Ford Motor Co. estimates it will spend to replace 13 million Firestone Wilderness AT tires on its pickups and sport-utility vehicles. Based on Ford's initial estimates, the program will cost it $230 per tire. Ford's cost for the replacement tires is estimated at between $75 and $100, based on retail prices and average mark-up figures. The remainder—estimated at between $130 and $155 a tire—will cover notification, advertisements, staffing a call center, running a Web site, shipping and handling, disposal, dealer labor costs and other administrative functions, a spokesman said. The company has created a Web site—http://fordfirestonewildernessatprogram.ford.com—for consumers to view the latest information on the program.
Administrative, advertising and labor costs to make up bulk of Ford's recall price tag
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