CONTACTS 
0201 - S & C Ford                         415 553 4400 fax or 800...
020101 - Mr. Bob Radcliff; Manager; Service Department     =Telephone/fax
0202 - San Bruno Ford Sales, Inc.         415 952 0500 fax 8885
020201 - Mr. Bill NLN; Sales Manager

SUBJECTS
Millie's Mercury Sable, 940423
Change Oil, Rotate Tires, Fix back door
Wheel Alignment, Vibrations, Warranty
951008 Replace front tires
Brakes
Tires

0908 -    ..
0909 - Summary/Objective
0910 -
091001 - Follow up ref SDS 16 0000, ref SDS 15 0000.
091002 -
091003 - S&C reported one tire has cord slippage.  Bought two new tires for
091004 - $110 including balancing and alignment.  Need to take defective tire
091005 - to a General Tire store for payment on warranty.
091006 -
091007 -     [On 951011 report tires not properly rotated. ref SDS 17 3355]
091008 -
091009 -
091010 -
091011 -
0911 -
0912 -
0913 - Progress
0914 -
091401 - Left car with attendant after preparing a Fast Process form for
091402 - finalization of work order by Barbara Stone.
091403 -
091404 - Submitted explanation of background on 950928. ref SDS 14 6783, which
091405 - highlighted with Service Manager, Bob, at ref SDS 14 9453, and also at
091406 - ref SDS 14 0896.  Also printed and highlighted discussion with Larry
091407 - on 951006. ref SDS 16 4561 and ref SDS 16 0708
091408 -
091409 -
091410 -
091411 -
0915 -
0916 -
0917 - 0956 called Barbara
0918 -
091801 - Talked to Diane.  Asked for work order number:  246377
091802 -
091803 -    Diane said the work order just says "pulls right when driving."
091804 -
091805 -    I explained that is an error that we need to fix.
091806 -
091807 -    Larry advised on 951006 that he would indicate in the work order
091808 -    that the vibration of the front interior panal on the driver's side
091809 -    needs to be fixed, and the vehicle needs to be inspected for
091810 -    warranty issues. ref SDS 16 0708
091811 -
091812 -
091813 - Diane put Larry on the phone.
091814 -
091815 -    Larry said Diane did not read the complete record, because she is
091816 -    unable to get it on her screen.  He read the full record and it
091817 -    shows the Work Order cites the vibration problem.
091818 -
091819 -
091820 -     ..
091821 -    Brake Lining Evaluation
091822 -
091823 -    Larry said analysis on 950928 shows the record of brake wear
091824 -    conflicts with industry standards. ref SDS 14 9975
091825 -
091826 -    He said these questions should be addressed by Ford engineers.
091827 -
091828 -    He will submit that record to them for answers to questions set out
091829 -    on 950928. ref SDS 14 0896.
091830 -
091831 -       [On 951023 submitted letter to Charles Mori asking about
091832 -       response from Ford. ref SDS 19 0900]
091833 -
091834 -       [On 951121 report Larry is still investigating. ref SDS 21 5681]
091835 -
091836 -    Larry said his analysis that severe changes in brake measurements
091837 -    reflect an error in taking the measurement on 950407, ref SDS 16
091838 -    8766, was a "guess."  As a result, he feels Ford engineers should
091839 -    review the record and formulate a professional opinion about cause
091840 -    and consequence with respect to needed action with respect to
091841 -    additional brake work, and/or changes to management practice.
091842 -
091843 -
091844 -    Warranty Inspection
091845 -
091846 -    Larry will have the mechanic inspect the vehicle for warranty work
091847 -    that may be needed per our discussion on 950906. ref SDS 16 0900
091848 -
091849 -    He said vehicle will be ready by 1500.
091850 -
091851 -
091852 -  ..
0919 -
0920 -
0921 - 1319 Barbara called back
0922 -
092201 - Tire Defect Discovered, Cord Slippage, Replaced Two General Tires
092202 -
092203 - Follow up ref SDS 16 4561.
092204 -
092205 - Barbara advised that S&C sent our car to another company that
092206 - specializes in tires.  That firm just reported to Barbara that they
092207 - discovered a cord was defective in the front right tire which requires
092208 - the tires to be replaced.  They believe this tire failure is the cause
092209 - of the pull to the right and the vibration we experienced on 950927.
092210 - ref SDS 13 9640
092211 -
092212 -     [See tire vendor's report below. ref SDS 0 9755]
092213 -
092214 -     [On 951031 Service Manager, Charles Mori, reported that S&C's
092215 -     policy is to use vendors who support Ford equipment, in this case
092216 -     tires, and that he assumed customer had made a mistake in taking
092217 -     the car to the wrong vendor. ref SDS 20 8530]
092218 -
092219 -     [On 951011 report tires not properly rotated. ref SDS 17 3355]
092220 -
092221 -     [On 961214 flat tire, Royals installed. ref SDS 23 6892]
092222 -
092223 -     [On 991006 warranty on new Firestone tires says vibration can
092224 -     cause tires to fail. ref SDS 27 1980]
092225 - ..
092226 - Barbara recalled that the problem reported by S&C's tire
092227 - subcontractor today, was one of the possibilities cited by Larry in
092228 - preparing the order on 951006, as a cause of driving problems.
092229 - ref SDS 16 4561
092230 -
092231 - I noted that Larry said in our discussion on 951006 that cord problems
092232 - in tires would have been strongly evident in driving, ref SDS 16 6811.
092233 -
092234 - We recalled that driving problmes on 950927 caused us to obtain follow
092235 - up service with S&C. ref SDS 13 9640
092236 -
092237 - Why didn't S&C report a problem when the car was serviced on 950906
092238 - then became evident shortly afterward?  Did S&C overlook evidence of a
092239 - safety hazzard on 950906 that required the corrections we are making
092240 - today?
092241 -
092242 - Barbara feels this record is an unfortunate coincidence.
092243 -
092244 -    [Below, the mechanic noticed tire wear on 950906, but S&C did not
092245 -    report it, and instead recommended wheel alignment. ref SDS 0 5332]
092246 -
092247 - She advised that cord failure may have occurred shortly after the
092248 - tires were rotated on 950906.  Possibly they were near failure prior
092249 - to that time when installed on the rear axle, then when moved to the
092250 - front axle the failure occurred under the greater stress endemic to
092251 - the front location.
092252 - ..
092253 - Barbarba said the tire vendor says replacing one tire will cost
092254 - $55 plus $8 for balancing and alignment.  She said the vendor
092255 - recommends replacing both tires so there is consistent wear.
092256 -
092257 -     [On 951011 Mark at 5 Points Tire concurred on industry practice to
092258 -     replace two tires, rather than only 1. ref SDS 17 7564]
092259 -
092260 - Barbara said S&C will pay for alignment, since Larry offered to do
092261 - this on 951006. ref SDS 16 0708.
092262 -
092263 - We agreed to this remedy.
092264 -
092265 - I asked Barbara to call the vendor and award the assignment, so work
092266 - can proceed while we conclude details of payment.
092267 -
092268 - Barbara said she will advise the vendor we want the car back by 1500.
092269 -
092270 - Barbara said Ford does not warrant tires.
092271 -
092272 - I asked if we buy a new car from S&C, drive around the block and
092273 - experience a cord slippage as represented occurred here, would Ford
092274 - send us to someone else?
092275 -
092276 - Barbara said that is what Ford would do.
092277 -
092278 - I asked where this understanding is set out in the sales agreement
092279 - with Ford?
092280 -
092281 - Barbara said it is in the Owner's Manual which is in a packet of
092282 - documents in the glove compartment.
092283 -
092284 - Barbara hung up to call the tire vendor.
092285 -
092286 -
092287 -
092288 -
0923 -
0924 -
0925 - 1340 called Barbara back
0926 -
092601 - Millie is here for lunch.  She suggested we get both tires back that
092602 - are replaced.  The defective tire should be marked so we can pursue
092603 - the warranty issue with the manufacturer.
092604 -
092605 - Barbara said she will advise the tire vendor to mark the defective
092606 - tire.
092607 -
092608 - I asked Barbara to write out in S&C's invoice the defect reported by
092609 - the vendor that requires buying new tires.
092610 -
092611 -
092612 -  ..
092613 - Tire Wear Alerted S&C to Wheel Alignment Problem
092614 -
092615 - I asked Barbara what alerted S&C that the tires needed alignment as
092616 - shown in S&C's invoice for the work on 950906, ref DRP 7 0022, which
092617 - was not received until 950920. ref SDS 11 4461
092618 -
092619 - I mentioned recent discussions with Bob on 950928, ref SDS 14 9453;
092620 - and later with Larry on 951006. ref SDS 16 4561
092621 - ..
092622 - Barbara said the mechanic who did the work on 950906, happened
092623 - to be standing near her at the service counter.
092624 -
092625 - She asked him why he recommended wheel alignment on 950906, as shown
092626 - on 950920? ref SDS 11 4461
092627 -
092628 - Barbara said the mechanic recalls seeing a wear pattern on the front
092629 - tires that were rotated to the rear which indicated alignment or
092630 - balancing was was needed.  She said we did not notice this in driving
092631 - prior to service on 950906, because defective tire wear on a fixed
092632 - axle does not impact driving, i.e, the axle absorbs the energy from
092633 - defective tire performance.
092634 -
092635 -     [On 951011 report tires not properly rotated. ref SDS 17 3355]
092636 - ..
092637 - I asked why excessive tire wear was not reported on the invoice,
092638 - and why the customer was not notified for consideration of preventive
092639 - maintenance, on 950906, as Barbara did today? ref SDS 0 9653
092640 -
092641 -     [On 961214 flat tire due to excessive wear, that was not reported
092642 -     on prior service on 961104. ref SDS 23 6892]
092643 -
092644 -     [On 970121 S&C has not addressed policy issue. ref SDS 24 4792]
092645 -
092646 - Since the mechanic noticed severe wear on one tire why wouldn't that
092647 - anomoly be cause to notify the customer about concerns Larry cited on
092648 - 951006 concerning the seriousness of cord slippage. ref SDS 16 4561
092649 -
092650 - This seems particularly acute, since, as Barbara points out, the
092651 - problem is hidden from the driving experience, because the rear axel
092652 - is fixed.
092653 -
092654 - Barbara advised this matter needs review by S&C management.
092655 -
092656 -     [On 960724 S&C reminded about need to record tire wear for
092657 -     warranty and preventive maintenance. ref SDS 22 0085]
092658 -
092659 -     [On 961214 flat tire due to excessive wear, that was not reported
092660 -     on prior service on 961104. ref SDS 23 6892]
092661 -
092662 -     [On 970121 S&C has not addressed policy issue. ref SDS 24 4792]
092663 -
092664 -
092665 -
092666 -  ..
0927 -
0928 -
0929 - 1412 called Barbara back
0930 -
093001 - I asked about the warranty for the new tires.
093002 -
093003 - She suggested I call Tom and Leo's Tire and Break who is doing the
093004 - work for S&C.
093005 -
093006 -                         415 861 4300
093007 -
093008 -
093009 -
093010 -  ..
093011 - Hankook Replace General Tires, Defect Due to Cord Slippage
093012 -
093013 -
0931 -
0932 -
0933 - 1415 called Leo's Tire and Break           415 861 4300
0934 -
093401 - Talked to Tom.
093402 -
093403 - I asked if we are getting the same or comparable tires to replace
093404 - those that are defective?
093405 -
093406 - He said we have tires manufactured by "General", but they are
093407 - installing tires manufactured by:
093408 -
093409 -                          Hankook
093410 -
093411 -    ...the model of the tire is called:
093412 -
093413 -                         Optieuro
093414 -
093415 - These new Hankook tires have a 50,000 mile warranty and a special road
093416 - hazard feature.
093417 -
093418 -     [On 961214 flat tire, Royals installed. ref SDS 23 6892]
093419 -
093420 - I asked if this will be in the documentation furnished by Leo's to S&C
093421 - for inclusion with our payment?
093422 -
093423 - Tom said it will be.
093424 - ..
093425 - Tom said he drove our car and it felt terrible.  He recognized
093426 - this as possible cord slippage.  He advised the problem is clearly
093427 - visible upon examination of the tire which shows severe, premature and
093428 - irregular wear.  I asked him to mark the area of defect.
093429 -
093430 -    Above, Barbara reports that wear was observed by S&C on 950906; but
093431 -    was not reported, except as the basis for recommending wheel
093432 -    alignment. ref SDS 0 9533
093433 -
093434 -      [On 990507 tires replaced again. ref SDS 25 1782]
093435 -
093436 -
093437 -
093438 -  ..
093439 - S&C Requies Customer to Seek Warranty Recovery from Other Vendors
093440 -
093441 - I asked Tom how we can be compensated for the tire failure prior
093442 - to warranty expiration?
093443 -
093444 - Tom said the duration of the warranty on the tires is typically not
093445 - entered in the Ford Owner's manual.
093446 -
093447 - Tom said Leo's Tire and Break Service practice is to reduce the amount
093448 - of the invoice for new tires by the amount owed on the warranty.
093449 -
093450 - I asked how much credit we get in this case?
093451 -
093452 - Tom said that since Leo's does not carry General tires, we have to go
093453 - to a store that sells General tires.  He said they will prorate the
093454 - mileage and write us a check for the value of the tires based on their
093455 - standard warranty for that tire.
093456 -
093457 -        [On 951031 Service Manager, Charles Mori, reported that S&C's
093458 -        policy is to use vendors who support Ford equipment, in this
093459 -        case tires, and that he assumed customer had made a mistake in
093460 -        taking the car to the wrong vendor. ref SDS 20 8530]
093461 -
093462 -
093463 -
0935 -
0936 -
0937 - 1441 called San Bruno Ford
0938 -
093801 - Talked to Bruce in Service.
093802 -
093803 - I advised of the tire failure per above on the car we purchased from
093804 - San Bruno Ford.  I asked for the warranty information on tires in the
093805 - sales documentation submitted by San Bruno Ford?
093806 -
093807 - Bruce said there is a separate document from the Owner's Manual that
093808 - says tires are not warranted for any amount of mileage.  Tires are
093809 - only warranted for manufacturing defect.  He said the tire warranty
093810 - document should be in the bound packet of documents in the glove
093811 - compartment.  Bruce agreed that a tire cord slippage reflects
093812 - manufacturing defect which should be covered by warranty.
093813 -
093814 - I explained the discussion with Tom at Leo's Tire Shop on the
093815 - warranty, per above, ref SDS 0 9645, and that we need to know a
093816 - reputable tire vendor that carries General Tires.
093817 -
093818 - Bruce said that for General Tires he calls:
093819 -
093820 -                5 Points Tire
093821 -                El Camino Real and Woodside Road
093822 -                Redwood City.
093823 -                415 365 0280
093824 -
093825 -      [Jan said below, 5 Point is on the North side of the overpass.]
093826 -
093827 -
093828 -
0939 -
0940 -
0941 - 1452 called 5 Point
0942 -
094201 - Talked to Jan.  I explained the background, per above, including Tom's
094202 - and Bruce's suggestions. She said they can probably take care of the
094203 - warranty payment.  They are open on the weekends.
094204 -
094205 - Said to talk to Jimmy.  She will advise him we are coming in.
094206 -
094207 -
094208 -  ..
094209 - S&C Used Vendor That Does Not Support Ford Tires
094210 -
094211 -
0943 -
0944 -
0945 - 1545 Pick Up Vehicle
0946 -
094601 - Received ref DRT 1 6801, setting out the defect in the tire, per our
094602 - understanding with Barbara.  However, there was no supporting
094603 - information from Leo's Tire Shop showing what work they performed and
094604 - the warranty for the new tires.  The billing clerk called Barbara.
094605 -
094606 - Barbara brought the missing documents, so we can pursue recovery of
094607 - warranty entitlement on the defective tire.
094608 - ..
094609 - I asked why S&C used a vendor that does not sell General tires,
094610 - since such action causes the customer to expend additional effort to
094611 - recover under the warranty?
094612 -
094613 - Barbara said S&C's policy is to use vendors that meet Ford Motor
094614 - Company's standards of workmanship.  S&C has had excellent results
094615 - using Leo's Tire Shop.
094616 -
094617 -        [On 951031 Service Manager, Charles Mori, reported that S&C's
094618 -        policy is to use vendors who support Ford equipment, in this
094619 -        case tires, and that he assumed customer had made a mistake in
094620 -        taking the car to the wrong vendor. ref SDS 20 8530]
094621 -
094622 -        [On 990507 S&C selling tires directly. ref SDS 25 4140]
094623 -
094624 -        [On 990603 S&C selling General Tire tires. ref SDS 26 1935]
094625 -
094626 -
094627 -     Analysis
094628 -
094629 -     It was unclear from this record whether S&C used an alternate
094630 -     product supplier because it has not developed a comparable
094631 -     relationship with a vendor that handles General Tires; or, whether
094632 -     this was an oversight, because in sending the vehicle to Leo's
094633 -     Tire Shop, the press of time did not permit consideration of the
094634 -     possibility that new tires might have to be purchased which
094635 -     required a vendor that carries Generals.
094636 -
094637 -        [On 951020 record conflicts with S&C's action. ref SDS 18 8845]
094638 -
094639 - ..
094640 - I asked Barbara to point out the tire warranty information which
094641 - she and Bruce said should be in the glove compartment.
094642 -
094643 - Barbara checked the Ford document packet in the glove compartment. She
094644 - could not find anything explaining the warranty of the tires.  She
094645 - submitted a warranty for Goodyear tires as an example of what she
094646 - understands are the terms for our vehicle.
094647 -
094648 - We opened the trunk and examined the General tires replaced today.
094649 -
094650 - We saw the severe wear which was also marked with white chalk showing
094651 - where the cord slippage had occurred, per discussion with Tom. ref SDS
094652 - 0 9755  The severity of the defect was even more apparent from running
094653 - a hand along the area of severe wear.
094654 - ..
094655 - Barbara said that despite the lack of warranty documentation on
094656 - the tires, she feels sure we are entitled to an equitable adjustment
094657 - on the purchase of new tires to compensate for the defect discovered
094658 - by Leo's Tire Shop.
094659 -
094660 -     [On 951011 sought warranty recovery. ref SDS 17 6540]
094661 -
094662 -     [On 951020 recovery on warranty reduced on grounds that S&C did
094663 -     not adequately maintain tires. ref SDS 18 9674]
094664 -
094665 -
094666 -  ..
094667 - New Tire Warranty Provides Less Value than Existing Warranty
094668 -
094669 - Barabara submitted a document entitled:
094670 -
094671 -               HANKOOK TIRE AMERICA CORP.
094672 -               Three Univeristv Plaza, Suite 430,
094673 -               Hackensack, New Jersey  07601
094674 -               Tel: (201) 342-3000   Fax: (201) 342-3119,
094675 -               Outside New Jersey:  800 426 5665
094676 -
094677 -
094678 -                     Limited Warranty
094679 -
094680 - ..
094681 - Hankook warranty seems to have two parts:
094682 -
094683 -     a.  Standard Limited Warranty Terms and Conditions
094684 -
094685 -         Full replacement of defective tires is offered within 12
094686 -         months or 25% of wear. ref OF 1 4561
094687 -
094688 -         After 12 months and up to 48 months Hankook will give credit
094689 -         on purchase of new tire pro-rated by percentage of treadwear
094690 -         remaining on the tire. ref OF 1 7639 - restated and indicating
094691 -         warranty period is 48 months. ref OF 1 3451
094692 -
094693 -            Comment
094694 -
094695 -            The warranty indicates 2/32 is "worn out" status, but does
094696 -            not define new tire status, ref OF 1 7639
094697 -
094698 -               [On 951020 analysis indicates Hankook warranty appears
094699 -               to be less beneficial to customer than the General tire
094700 -               warranty, ref SDS 18 6453]
094701 -
094702 -         Owner pays for dealer services (e.g., mounting, balancing,
094703 -         alignment) and taxes. ref OF 1 3342
094704 -
094705 -         Excludes "premature or irregular wear". ref OF 1 9643
094706 -
094707 -            Comment
094708 -
094709 -            Why is this exclusion necessary?
094710 -
094711 -            Our tire is reported by Leo's Tire Shop to show premature
094712 -            and irregular wear. ref SDS 0 9755
094713 -         ..
094714 -         Excludes wear due to improper service such as improper
094715 -         mounting, balancing, inflation. ref OF 1 4801
094716 -
094717 -            Comment
094718 -
094719 -            The reason we select a single service vendor, like S&C, is
094720 -            to ensure against these conditions.  If S&C or Leo's
094721 -            provides inadequate service, why should not any resulting
094722 -            problems be included in the warranty?
094723 -
094724 -         Excludes "ride complaints" after 1/32 tread wear. ref OF 1
094725 -         4922
094726 -
094727 -            Comment
094728 -
094729 -            There is no basis set out in the warranty for calculating
094730 -            the amount of tire wear.  How is the customer alerted when
094731 -            1/32 of tread wear has occurred?  Is it a mile, 10,000
094732 -            miles?
094733 -
094734 -            The instant problem was discovered as a result of a "ride
094735 -            complaint" on 950927. ref SDS 13 9640  This section appears
094736 -            to be conflicting.
094737 -
094738 -     b.  Limited Free Replacement Warranty for Passanger Radial Tires
094739 -
094740 -         Hankook will replace free of charge tires rendered
094741 -         unserviceable within 1 year from date of purchase or the first
094742 -         25% of useable tread wear.  Taxes and service charges are
094743 -         excluded. ref OF 1 4561
094744 -
094745 -            Comment
094746 -
094747 -            There is no basis set out in the warranty for calculating
094748 -            the amount of tire wear.  What is the baseline tread depth
094749 -            for calculating 25%?
094750 -
094751 -         Hankook requires that the original purchase invoice be
094752 -         submitted, ref OF 1 5822,
094753 -         ..
094754 -         Hankook forms must be prepared and submitted showing
094755 -         that regular maintenance was performed.  This form requires
094756 -         recording tread wear. ref OF 1 8222
094757 -
094758 -            [On 951011 report that failed Genral tires were not
094759 -            properly rotated, indicates importance of regular service
094760 -            and adequate records. ref SDS 17 3355]
094761 -
094762 -            Comment
094763 -
094764 -            These requirements conflict with the objective to purchase
094765 -            tire performance. Documents are rarely available a week
094766 -            later, much less a year later.  Since S&C performs
094767 -            maintenance, it seems untenable to require them to fill out
094768 -            Hankook's form. This provision appears to conflict with
094769 -            industry practice.  S&C can record tire rotation and tread
094770 -            wear on its invoice, to establish that required maintenance
094771 -            is performed.
094772 -
094773 -         Hankook requires submission of warranty card within 30 days
094774 -         of date of purchase. ref OF 1 6420
094775 -
094776 -            Comment
094777 -
094778 -            Industry practice for managing documentation is so poor as
094779 -            to render this requirement moot.  There was no disclosure
094780 -            by Leo's Tire Shop or S&C that this form had to be
094781 -            submitted to Hankook in order to make effective the
094782 -            warranty.  The print is so small on this document that it
094783 -            is barely readable.
094784 -
094785 -
094786 -
094787 -
0948 -