Chinese Tires Show Outsourcing Bounce-Back

According to a New York Times story:

Federal officials have told a small New Jersey importer to recall 450,000 radial tires for pickup trucks, sport utility vehicles and vans after the company disclosed that its Chinese manufacturer had stopped including a safety feature that prevented the tires from separating.

This is a prime example of the dangers of outsourcing, with importing often being another face on the same situation. I'm not suggesting that it never makes sense, but too many companies are short-sighted in considering the business trade-offs. They look at the unit price and forget little things like quality control that can cause government agencies like the National Highway Traffic Safety Administration to force them into a full recall. Management of Foreign Tire Sales of Union, NJ apparently suspected a problem for two years before telling anyone. People have been killed in accidents allegedly caused by the tires. Anyone want to guess whether corporate management and board will become defendants?