Shares of Goodyear Tire & Rubber Co. took a 1.7% hit in morning trading Tuesday, after the tire maker issued a safety recall of more than 173,000 tires due to a defect that has led to crashes that resulted in deaths and injuries, after initially declining a request for a recall. The U.S. National Highway Traffic Safety Administration (NHTSA) said the recall is for certain G159 tires installed in motorhomes, sized 275/70R22.5 and produced between February 1996 and January 2003, as tread separation can cause a loss of vehicle control. The NHTSA said it had opened an evaluation in December 2017 to review allegations about the tires’ defects, “that had caused motorhome crashes resulting in deaths and injuries” to those vehicles’ occupants. “After a series of conversations and meetings between Goodyear and NHTSA, by letter of February 22, 2022, NHTSA requested that Goodyear conduct a safety recall of the 275/70R22.5 G159 tire (the “Subject Tires”),” the NHTSA said. “Goodyear filed its response to that letter on March 8, 2022, declining the request.” Goodyear has since agreed to undertake the recall to address concerns that some of these tires may still be in use. Goodyear’s stock has tumbled 36.9% year to date while the S&P 500 has declined 13.6%.
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