Ford Pinto

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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?