Pinto Fires - Case Study



Pinto Fires - Case Study

Introduction

Greed is the key motivator and root to evil behind some companies making an ethical and good decision. The Ford Company also encountered this greed trap that might result in loss of several human lives. Before the Pinto Fires disaster, the company had a safety pioneer image and reputation in the industry of automobile with additions like seat belts. On the other hand, as the small cars invention started to lose share in the market to the foreign marketplace. Thus, Ford Company must take actions quickly.

International markets were starting to demonstrate promise with the cars that were put out on the market for sale. The company started to realize the pressure and deemed that it required being in the attention of the competition. The CEO Ford, Lee Iococca has taken a decision that it was time to bring change and therefore, Ford introduced Pinto. In contrast, the Pinto had several faults that increased the cost of Ford Company to extent that ever expected.

Facts in the Pinto Fires Case Study

On August 10 1978, three teenage young girls were killed in an automobile fire accident occurred at Ford Pinto because of fault in the fuel tank design.

On the fire caught at the Ford Pinto, three teenage girls were killed on August 10 1978 (Tavani, 2011).

As a result, of this fire reckless charges of homicide were put on the Ford Company.

In 1968, Ford decided to penetrate in the market of small car.

Time duration from conception to production during the beginning phase of the Pinto was about three and half years.

It was planned at Ford Pinto was being manufactured that the car was cost low and not more than two thousand dollars, as well as it was not cost more than two thousand pounds.

It was apparent in each crash test that there were cracks in the gas tank.

Studies have shown that cars in huge number were burned each year.

In 1977, all Pintos was manufactured with a rupture proof fuel tank design.

Iacocca and Ford's President often asserted that “safety does not sell.”

It was estimated by Ford that the company has to pay $200,275 for each life lost.

Gas tanks improvement were unjustifiable as the cost of the $11.00 improvement of gas tank and the dying cost in a Pinto.

During 1973, reports were received by the field recall coordinator that depicted that the Pinto might burst out with a rear end collision even at a low speed; the company still continued manufacturing of the vehicle.

In 1972, for the rear end collision Richard Grimshaw received about 6.3 million dollars. He was engaged in which the Pinto where the fire caught subsequent to the gas tank ruptured.

All Pinto were recalled in June 1978, which was manufactured between 1970 and 1976.

During 1980, the representatives of Indiana trial of the company made the argument that the Ford Company continually engaged in benefit/cost decisions.

Suffering and pain of victim was estimated to about 10,000 dollars based ...