Preview

Ford Pinto Case Files

Better Essays
Open Document
Open Document
1275 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ford Pinto Case Files
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

You May Also Find These Documents Helpful

  • Good Essays

    Pinto Case Summary

    • 952 Words
    • 4 Pages

    Mr. Gioia’s decisions regarding the Pinto fires highlights the disengagement from emotion often associated with business decisions. From a business stand point, decisions have to be based on facts and financial repercussions are the ultimate deciding factor in which action to pursue. If a defect in a certain make or model of car is classified as an extremely rare incident then no action will be taken. This is governed by the premise of statistical probability. Coupled with a detailed cost versus benefits analysis the decision is quickly made in these situations to not pursue recalls (Gioia, 1992, p. 381).…

    • 952 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Mgmt 301

    • 386 Words
    • 2 Pages

    The Ford Motor Company contended that by strictly following the typical approach to cost-benefit analysis, they were justified in not making the production change to the Pinto model. Assuming the numbers employed in their analysis were correct, Ford seemed to be justified. The estimated cost for the production change was $11 per vehicle. This $11 per unit cost applied to 11 million cars and 1.5 million trucks results in an overall cost of $137 million.…

    • 386 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Pinto Fires

    • 687 Words
    • 3 Pages

    a. 1968 Ford made the decision to battle foreign competition and produce a small car to be in the showroom by 1971…

    • 687 Words
    • 3 Pages
    Good Essays
  • Good Essays

    1. Ford developed a new model, later to be known as the pinto, changing the design drastically.…

    • 747 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Mustang vs Camaro

    • 1652 Words
    • 7 Pages

    In 1961, the vice president and general manager of Ford, Lee Iacocca had a dream. He envisioned the Ford Mustang. It took several months to get approval for funding to go towards the Mustang through multiple discussions, meetings and market surveys. The funding was granted in 1962. The Mustang’s parts were mainly borrowed from the Falcon to help keep the costs of production low. The car offered a variety of options for the exterior, interior, etc. Buyers were able to choose if they wanted their mustang to be fast, fancy, economical or plain. Ford wanted the Mustang’s design to appeal to everyone and anyone. It was advertised as “the car to be designed by you”.…

    • 1652 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Ford Pinto Case

    • 937 Words
    • 3 Pages

    In this essay, I will talk about the ford Pinto case, and how the information was withheld from public in order to save company from huge losses and at the same time keep company’s reputation intact. I don’t think the decision of the ford company to with hold the information about the safety-issue of the car for which they were already aware of; was the right thing to do.…

    • 937 Words
    • 3 Pages
    Powerful Essays
  • Better Essays

    Ford Pinto- Ethics

    • 1525 Words
    • 7 Pages

    Because Iacocca wanted the Pinto released with the 1971 vehicle models, the production planning period was dramatically reduced from three and one-half years to approximately two years. Additionally, he implemented a specific goal known as "the limits of 2,000" (Gioia, n.d.). This goal meant that the Pinto could not cost more than $2,000 and could not weigh more than 2,000 pounds. Consequently, the rush for completion led to the Pinto 's inadequate gas tank design resulting in the tank exploding upon contact in rear-end collisions. Despite crash test results that made Ford fully aware of the faulty tank design, Ford opted to stick with its original gas tank design rather than spend the extra $11 per vehicle. To correct the faults in design as identified in Ford 's cost benefits analysis…

    • 1525 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Pinto Fires Case Study

    • 530 Words
    • 3 Pages

    After watching this video where Danny Gioia talks about his time at Ford and listening to these students pick his brain about his experience with the Pinto Fires scenario. Overall, after reading the case and Gioia’s personal memoir about his experience and how he grew, I felt strongly connected to his case. After writing my ethical dilemma paper, I found myself falling into scripting my unethical behavior and also not fully being aware of their ethical situation. I knew that something felt weird about my situation, but I did not explicitly acknowledge it as an ethical dilemma with multiple values in conflict. I understand how after working at Ford for a while, and falling into automated actions that…

    • 530 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Case of the Ford Pinto

    • 1565 Words
    • 7 Pages

    The Ford Pinto first rolled off the Ford Motor Co. production lines in 1971 and stayed in production in its original state until 1978. The vehicle engineers were tasked to develop the vehicle and put it into production within 25 months, which was nearly half the time in which the average new vehicle is put into production. The Ford engineers were aware that rear-end impact safety tests were pretty standard at the time, but they were not required by the National Highway Traffic Safety Administration at that time. The vehicle was rushed into production anyway to compete with foreign compact cars being developed by the Japanese during that time period. Only after the vehicle was made available to the public was the vehicle tested. The Ford Pinto ended up failing the rear safety test, due to the fact that it was susceptible to fire from rear end collisions. Ford engineers determined that the problem could be resolved by installing a baffle, which protected the gas tank from being punctured during rear-end collisions. The part would have only cost between $6.65 and $11 to be install, but the Ford Motor Co. determined through cost-benefit analysis that the cost of lawsuits would be less than the cost of installing the baffle and decided not to install the baffle. Ford Motor Co. also failed to notify customers of the problem and offer them the option to have the baffle installed. Between 1971 and 1978 the Ford Pinto would be involved in thirteen rear-end collisions that caused the vehicle to start on fire. The actions of the Ford Motor Co. were scrutinized for the production of the vehicle. (DeGorge)While the vehicle did meet the safety standards of the time, Ford Motor Co. knew of the problem and did nothing to resolve it. This leads us to the question the ethical actions of the Ford Motor Co. production of the Ford Pinto. After realizing there was a safety issue with the Ford Pinto, was it morally right…

    • 1565 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Case Study Ford Pinto

    • 658 Words
    • 2 Pages

    The moral issue of the Ford Pinto case is whether or not Ford Company is responsible for the explosion caused by the failed tank. Ford is morally responsible for the incident since it could have been prevented, public safety should be their top priority when designing their products, and they have disregarded the utilitarianism principle.…

    • 658 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Ford Pinto

    • 1922 Words
    • 8 Pages

    Ford produced the Pinto automobile from 1971 to 1980. Initially the car sold well, but a defect in the early models made Pintos prone to leaking fuel and catching on fire after relatively low-speed, rear-end collisions. The Pinto’s gas tank was located behind the rear axle. A rear-end collision of about 28 miles per hour or more would crush the car’s rear end, causing the tank to split and the filling pipe to break loose. It had been proven that spilled fuel and sparks from the crash caused fires that produced fatalities or serious burns.…

    • 1922 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    The Ford Pinto Project

    • 1896 Words
    • 8 Pages

    The Ford Motor Company has been the leading car company for many decades. In the late 1960’s early 1970’s the company was losing the battle with Japanese with the small efficient cars. Lee Iacocca, Chief Executive Officer the Ford Motor Company wanted a car that will be competitive to these Japanese compact cars. With this intention in mind, the company wanted to manufacture a sub-compact vehicle that weighs less than 2,000 pounds and costs under $2,000. The result is the Ford Pinto. The Ford Pinto was one of the earlier sub-compact cars of the 1970’s. The Pinto was a catalyst in the revitalization of domestic compact cars at this time when Japanese imports were front rumors. Sure the car was simply affordable but had one flaw that would tarnish its reputation and the company’s. The Ford Pinto had fire hazard issues resulting from the placement and construction of the gas tank. When a Pinto is rear-ended the car would burst into flames resulting in an explosion. The company realized this concern during production. Because Iacocca wanted a fast sell of these cars records indicated that there was not a rear end collision test conducted until months after it was already in the market. Management did a cost analysis and determined that the cost of fixing the problem versus any lawsuits; it would be cheaper to pay for the lawsuits that would arise.…

    • 1896 Words
    • 8 Pages
    Good Essays
  • Better Essays

    On August 10, 1978 three young girls died in a 1973 Ford Pinto after being stuck from the rear by a driver in a van. The Ford Pinto was completely engulfed in flames and the accident resulted in the death of the three young girls. Today, the debate continues regarding whether or not The Ford Motor Company was responsible for this case and many other cases involving the Pinto bursting into flames resulting in disfigurement or death.…

    • 1604 Words
    • 7 Pages
    Better Essays
  • Good Essays

    When the modern car was invented in Britain, the government enacted the Red Flag Act that required three people at all times to operate the vehicle: a driver, a person to fuel up the vehicle, and someone to stand in front of the car and wave a red flag. The government was worried that cars would endanger civilians, and enacted a two mph limit in urban areas. Soon after, the commercialization of vehicles shifted to the United States, and Henry Ford would initiate Ford, the car company, in 1903. Without having to be concerned with regulations similar to the Red Flag Act, Henry was able to create vehicles that traveled up to forty-five mph. This more efficient method of traveling would later on prove to be disruptive for the horse and buggy industry, causing the number of horse to decline tremendously over the course of forty years. Nonetheless, the invention of the horse-less carriage was an easy target that acquired multiple technological problems in the process of development. Even more true, past supporters of the Red Flag Act had a reason to worry because cars were dangerous, and in today's times, they are the leading cause of accidental deaths. However, despite such worries, Ford did not have to be rules of the horse and buggy business trying to stifle the emergence of…

    • 875 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Ford was primarily motivated by profit and market share, evidenced by their decision to not recall the car and choice to pay lawsuits instead of fixing the gas tank issue. Ford completely disregarded their responsibility to produce a safe product by foregoing the universal safety standards in order to increase profit – this action is not intrinsically valuable as it acts for the good of the company. If this maxim of foregoing car safety in order to increase profit was applied universally, there would be obvious contradiction from the employees of Ford who drove a pinto and would not agree to this rule. This contradiction implies that the maxim to forego safety standards in the interest of profit is not morally valid, and Ford using this maxim to make the decision to not recall the cars is morally…

    • 338 Words
    • 2 Pages
    Good Essays

Related Topics