Ford Pinto Essay

1100 words - 5 pages

The Ford Pinto Case
In the late 1960’s Ford Motor Company wanted to produce a small model car to compete with small Japanese and German imports like Volkswagen, Datsun and Toyota (Danley). In 1969 Ford’s Board approved the plan to produce the Pinto. The CEO, Lee Iacocca, wanted a car that was low weight, under 2,000 pounds, and low cost, under $2,000. Lee “Iaccoca imposed the 2000/2000 rule, i.e., the Pinto could weigh no more than 2000 pounds and cost no more than $2000” (Danley). The engineers had about two years to design and manufacture a product. The 1971 Pinto went into production in 1970. The quick turnaround of the Ford Pinto was huge as the normal time frame to bring a new ...view middle of the document...

During the design phase, Ford decided to place the tank behind the axle instead of above it (which was common for cars of that size at the time) because placing the gas tank above the axle would mean less trunk space. Placing the tank behind the axle left about nine inches of crush space (Shaw). In addition, the bumper on the back of the Pinto was not very functional in protection from a crash. Meaning that if the Pinto was involved in a rear-end crash; the likelihood of the bumper protecting the gas tank was very minimal. “Several bolts protruded out of the differential housing in a way that threatened the gas tank in the event of a collision” (Shaw). After a study conducted by Ford, the engineers determined that a baffle, or plastic shield, placed between the gas tank and bumper would bring the car’s safety level up to similar standards of cars in its class.
Ford had two options regarding the gas tank issue with the Pinto. Recall the cars and retrofit them with a baffle or leave them as is and deal with potential lawsuits from injuries and deaths, if they occurred. The cost of the baffle was about $11 per vehicle. There was an estimated 12.5 million vehicles to retrofit for a total cost of $137.5 million. If Ford chose not to add the baffle then they would have to consider the value of life, if lawsuits were filed. Ford determined “$200,000 as the value of life and $67,000 as the value of injury avoidance” (Shaw). Considering how many potential accidents that would result in death or injury, Ford figured the total payout to be about $49.5 million. Figures indicated it was cheaper to pay out lawsuits rather than correct the problem with the Pinto. In addition, changing the production line to add the baffle to the car meant a higher priced car, which Lee Iaccoca did not want. The result was leaving the Pinto as it was designed and the company would deal with lawsuits if and when they arose. At the time, Ford did not consider how much negative publicity would come about because of their lack of disregard for the...

Other assignments on Ford Pinto

The Ford Pinto Ethical Dilemma Essay

295 words - 2 pages negligence in not following the proper inspection procedures. It will be observed how this company was affected by the ethical and unethical issues regarding the Ford Pinto along with Ford and the Department of Transportation being the blame for every accident that transpired for not following the normal inspection procedures. A comparison of utilitarianism, deontological and virtue ethics in whistle blowing will be discussed to display how any

The Ford Pinto Case From A Utilitarian And Deontological Perspective

885 words - 4 pages Bedrijfsethiek Opdracht 2 The Ford Pinto Case From a Utilitarian perspective In utilitarianism, the merit or demerit of an action is entirely determined by the effect it has on everyone affected by the action. An action is deemed morally right if it leads to the greatest possible happiness for the greatest number of people. The motivation behind a choice is never considered in utilitarian theory. For reasons of verifiability, it only

Utilitarianism

406 words - 2 pages accidents. Before deciding redesign Pinto, the Ford’s managers decided that the human’s lives was worth $ 200,000 million and it seemed to be immorally and arbitrary when assigning the price to the life. The managers of Ford have to know that there is no price for life and health of people. When they consider the right to approach, they should not have ignored customer’s safety but they must try their best to improve their cars to ensure best products

Business Ethics

2524 words - 11 pages problem with this high-risk high reward viewpoint is the case of the Ford Pinto. Dennis Gioia explains that Ford knew of the safety risks of the Pinto, but continued to sell them without recall. This put customers in serious danger of being injured. Ford used cost-analysis to determine it would be cheaper to not recall these cars at first and saw that they could make profit (Gioia p.384). Obviously, Ford was not too hurt by this situation, as they are

Mgt216

714 words - 3 pages The first ethical issue presented in the ethics game simulation was whether to warn consumers about the contaminated product and what information to provide consumers about the contaminant. The second ethical issue was whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. G-BioSport was not required to meet prior approval from the Federal Drug Administration before they

Economy Effect Of Marijuana

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout

2033 words - 9 pages ECONOMY 26 Luring a big firm to town is not the secret to job growth DEFEND YOUR RESEARCH 30 Are morning people wired for success? VISION STATEMENT 32 The social web’s east-west divide COLUMN 38 Warren Bennis looks back on his surprising path to fame New Thinking, Research in Progress hbr.org New Thinking, Research in Progress hbr.org FIRST The VC Shakeout Venture capital hasn’t worked for a decade and must be radically

Hospitals Paper

6014 words - 25 pages I hope to provide in this paper a comprehensive understanding for what the term “hospital” has become. Hospitals are an extremely complex system that man has created and shaped and reshaped throughout history. My goal in writing and researching this paper will be to provide those who read it a clear understanding on how the hospital system got to where it is today, and to shed some light on the many organizations that affiliate with and

Course Syllabus

2610 words - 11 pages [pic] COURSE SYLLABUS Semester: Fall, Year: 2012  College Mission Statement Richard J. Daley College provides high-quality education which leads to academic success, career development, and personal enrichment that fulfill diverse community needs. Mathematics Department Mission Statement Our mission is to deliver excellent service and to provide learning opportunities by offering a wide range of mathematics courses, which will help our

Management

1477 words - 6 pages Boeing Management Planning Heather Oetzel MGT 330 October 22, 2012 Joe Cheng Abstract Boeing is known as “the world’s leading aerospace company and the largest manufacturer of commercial jetliner and military aircraft combined ("The Boeing Company: About Us", 2012). Every company uses different types of management techniques including how the planning function of management is used. Planning allows organizations to develop how the

Assisted Suicide

1015 words - 5 pages Should physician-assisted suicide be legal? While I believe if one chooses to end his or own life through physician assistance for reasons that they chose, the choice should be up to the individual. Physician-assisted suicide should be at one's discretion. “Assisted Suicide, also called Voluntary Euthanasia, is currently a contentious issue in many countries. Because Euthanasia is legal in a few modern democracies: the Netherlands, Belgium

Similar Documents

Ford Pinto Essay

953 words - 4 pages Principles of Responsible Commerce (COMM 101) Case 2.3 (The Ford Pinto) Week 4 1. What moral issues does the Pinto case raise? Moral issues that Ford Pinto case raises included producing dangerous products which are not safe to use it without informing the dangerous of the products to the public. In addition, lobbying the NHTSA to delay the safety measure of the products is also one of the moral issues that Ford Pinto case raises

Ford Pinto Essay

1015 words - 5 pages Ford Pinto Case   Ford Pinto Case If we were involved in the Ford Pinto dilemma we would have used Deontological Ethical reasoning to decide whether or not to disclose the danger that the Pinto posed and/or use that reasoning to determine whether or not to install the part(s) that would make the Ford Pinto safer. Our decision would be to do what is morally right and avoid doing what is morally wrong, regardless of the consequences. True

Ford Pinto Case Essay

344 words - 2 pages “Ford Pinto Case” After watching this video about the Ford Pinto Case, I think their decision was no ethical, because of the cost-benefit analyses they applied, trying to determine if the flaw in Ford Pinto automobiles is worth the financial risk in comparison to the value in human life, which is unconscionable and indefensible. Ford estimated that each dead that could be avoided would be worth $200.000 and each major burn injury $67.000 and

Ford Pinto Case Essay

360 words - 2 pages FORD PINTO CASE The Ford management has chosen to be unethical and morally unworthy to be trusted with the lives of its customers. Can you just imagine the number of individuals riding every day in the cars that they produced, who are unaware that they could be in an injury any moment? Ford management has chosen not to follow the safety guidelines and standards in producing such products because at that time, the government is still not that