Case Study Ford Pinto

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Case: The Ford Pinto

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INTRODUCTION

In the early 1970's when competition from Japan's auto makers was heating up, gas price was

easing, the demands for energy conservation were just around the corner. Ford was making a

variety of large cars like the smaller, cheaper, lower-quality cars were entering the

US market. In line with that, The Ford Pinto was produced which is a subcompact car that was

manufactured and marketed by Ford Motor Company in North America from the 1971 to the 1980

model years as an attempt to gain a large market share, the automobile was designed and develop to

meet the company sales and distribution schedule. The Pinto was the first subcompact vehicle produced

by Ford in North America. It is also Known inside the company as “Lee’s car,” named after

Ford president Lee Iacocca, Ford Pinto was to weigh no more than 2,000 pounds and

cost no more than $2,000

PROBLEM

Ford faced on ethical, social and political issues since the 1970s, the safety reputation of the Pinto has

generated controversy. During crash tests which preceded the introduction of the Pinto to the public, it

became apparent that the vehicle had a dangerous design flaw. The gas tank was so designed and

located that when it was involved in a rear end collision at an impact speed of 20mph or higher, the tank

was apt to rupture, causing a fire or explosion and 30mph rear endings would cause the gas tank leak

and the rear of the car to be folded up into the back seats.

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Another is that, there are several types of damage deformation of the gas tank, leakage and damage to

the filler pipe was found during the test. Some says that due to the rushed production of pinto in just

twenty-five months so it could be included in Ford’s 1971 line of new model causes the problem.

Due to the problem in the car, on the side of ethical issues that ford’s faces may loses their lives due to

car accident and fire and anticipating using cost-based analysis the amount to increase in their profit and

calculating the value of human life is a wrong in this concept.

A strong power in the industry and in the government gain more advantage on its trials and

judgments for their faced cases that results in decisions that is in favor to the company the Pinto case

brought up issue of abusing human rights and behaved unethically in business and that’s unfair on the

part of the family of victims.

PROPOSED SOLUTION

Events relative to the Ford Pinto case demonstrate some of ethical issues related to technology, Skills,

and safety. Ford should listen to the proposed solutions of its employees e.g engineers to recall and

redevelop the model provide quality product especially on safety of its consumers. If we were a part of

the company’s management, we would propose to evaluate the consumers safety to provide a high

quality of vehicles while anticipating the increase companies return, sales or profits on its product. To

manufacture a trendy but affordable small-sized vehicle in line with low operating cost, the company

must make a judgment call about the location and protection of the fuel tank to prevent such incident

resulting to death.

In line with the cost-based benefit analysis of the company’s decision which the company should

delay and recall the introduction of its vehicle to the public to maximize the companies research and

development to detect the most possible solution to the problem while maintaining the cost and the

benefit that they will gain.

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