Presentation Transcript
Ford Pinto :Shabahat A. Tipu
Acc 6300 Ford Pinto
Overview :Overview Ford Motor Co. meet strong competition from Volkswagen and others.
In 1970, Ford introduce new vehicle known as the Pinto.
Price tag of $2,000 or less
Requires about 3 ½ years of actual production
Key People (1970’s) :Key People (1970’s) Ford’s Product Planning Committee:
Lee Iacocca – President of Ford Motor Co.
Project was overseen by Robert Alexander – Vice President of car engineering
Harold MacDonald – Ford’s group Vice President of car engineering
Problem Faced by Ford Pinto :Problem Faced by Ford Pinto The car burst into flames when rear-ended at 21 miles per hour.
The ruptured tank then spew gas into the passenger compartment to ignited immediately.
What Key People Did :What Key People Did Many reports were passed up the chain of command during the design and the approval process.
Including several results of crash tests.
Solutions to the Problem :Solutions to the Problem First Option:
Mounting the gas tank above the rear axle;
Second Option:
Installing a rubber bladder in the gas tank; however, that is not cost-effective; or
Third Option;
Lobby against governmental regulations.
What Company Decide :What Company Decide Instead of fixing the
problem, the company
successfully lobby
against governmental
regulations
Ford’s Cost-Benefit Analysis :Ford’s Cost-Benefit Analysis
Fatality Payment Component :Fatality Payment Component
Conclusion :Conclusion Did Ford management actions were ethical when they choose third option (without considering customer safety)?
Should Ford have given its Pinto customers the option to have the rubber bladder installed during production?