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Tyre recall costs at least £570m

Ford and Firestone are facing increased legal pressure to recall more Explorers as relatives linked to fatal tyre failure crashes seek damages.

UBS Warburg estimates the total cost of the recall and subsequent litigation to be at least £570m. But the analysts have been unable to apportion costs to each company involved. The accidents have caused at least 100 deaths and 400 injuries.

Ford says more than 40 law suits have been filed since the recall. In the mid-1990s the company paid an average £223,000 to the families of victims killed by Bronco models rolling over.

A US judge in Illinois is due to decide this week whether the companies should be forced to widen the recall.

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