Case Study of the Ford Pinto Fires
The existing prestigious Ford Motor Company has been in business centuries. Ford is known as a worldwide leader in automotive technology, automotive-related products and motor vehicle services. Over the last 20 years the company has been venturing into newer industries such as aerospace, communications, and financial services. Discussing in detail the Ford Pinto fires Team D agrees that the Ford Motor Company’s main focus in the 70’s was to gain profit and be competitive with the foreign market. With the pressures of Lee Iacocca to be competitive in these markets he came up with a plan to put a car into production that weighed fewer than 2,000 pounds and that would cost the consumer fewer than $2,000. Production of the Ford Pinto began in 1971 and sold before safety tests were complete, which results in the company discovering a default with the vehicles gas tank. While driving a 1973 Ford Pinto in 1978, three young teenage girls in Indiana died in an automobile accident when a van hit the car in the rear and causing the fuel tank to rupture from the impact and the car burst into flames severely burning the driver and passengers. The discovery after extensive research by the company was that the cost of lawsuits would compare diminutive to the cost of the adding a new part of the Ford Pinto in production, so there were no recalls. Starting the recall of the Ford Pinto by the Ford Motor Company began in1978, after the death of six people between June 9, 1978, and September 15, 1978, and the filing of the first criminal charges on an American Corporation. The jury in the criminal case did not find the company guilty of criminal charges. Deciding to stop the production of the Ford Pinto was a decision made by the Ford Motor company in 1980.
Playing major roles in making decisions regarding the Ford Pinto were two people Lee Iacocca and Dennis Giola. Lee Iacocca was instrumental during that time because he was an...
Please join StudyMode to read the full document