Gigantic Motors Case Study

Only available on StudyMode
  • Topic: Ethics, Vulcan, Jonathan Archer
  • Pages : 11 (3835 words )
  • Download(s) : 623
  • Published : June 5, 2012
Open Document
Text Preview
Travis Johnson
An Explosive Problem at Gigantic Motors
5.1.12

Step I. Understanding the situation

A. List and number the relevant facts.

Statement of Fact Number| Statement of Fact|
1| Jonathan Archer and Zefrem Cochrane are employees of the Rugged Trucks Company, a light truck division of Gigantic Motors Corporation.| 2| Jonathan and Zefrem have been coworkers for approximately one year.| 3| Zefrem tells Jonathan that he would like to talk about something confidential that needs to stay confidential, which Jonathan agreed would stay confidential.| 4| Zefrem’s current project involves repositioning fuel tanks on company truck designs for the new model.| 5| Ten years ago for fifteen years prior, Rugged Trucks’ fuel tanks were mounted outside of the side frame rails of the trucks to protect the tanks in case of a side impact.| 6| Zefrem learned that the former positioning of the fuel tanks on the trucks increased the chances of explosions during side impact.| 7| Safety research of the history of the trucks showed that the outside positioning of the fuel tanks throughout the fifteen-year period led to approximately 50 side-impact deaths and 110 personal injuries.| 8| Rugged Trucks exclusively designed and used the outside positioned fuel tanks.| 9| Approximately 6.3 million of the 10 million Rugged Trucks with outside positioned fuel tanks are still being used.| 10| Zefrem has mixed feelings about the older-designed Rugged Trucks still being used because of the proven hazards associated with them.| 11| Twenty-seven ago, the original plans for the Rugged Trucks included the safest, most fuel efficient, and driver-friendly design.| 12| Gigantic Motors retained Dynamic Motors’ Fuel Development Division to design Rugged Trucks to build a solid long-term reputation of the trucks.| 13| While Dynamic was the designer of the Rugged Trucks, Gigantic had the authority to furnish the design criteria and amend design decisions.| 14| During the original design of the Rugged Trucks, the outside positioned fuel tanks were considered a hazard to side impacts, but Dynamic felt they had designed around the issue by fastening fuel tanks to be thrown off in the event of a side impact.| 15| The Rugged Trucks lacked a fail-safe unlocking system for the fuel tanks, even though the design had indicated the system to be in place was fail-safe.| 16| Due to Dynamic’s design, no other truck was considered as safe in bumper design, rollover-prevention, cabin safety, and other areas, as indicated by a safety record.| 17| During the fifteen-year period with the outside positioned fuel tanks, Rugged Trucks met all federal performance standards and state and federal regulations, including the standard for side-impact crashes.| 18| The Rugged Trucks prior to ten years ago are more vulnerable to fire during a side impact compared to similar vehicles, but they are safer in virtually every other way.| 19| Zefrem spoke with the chief safety engineer, Richard Daystream, about his concerns with the trucks.| 20| Richard Daystream stated that a recall of the older trucks had been considered but deemed as too expensive to conduct in light of the Gigantic’s great safety record.| 21| Zefrem then spoke with the vice president in charge of safety and public relations, Helen Noel, about his concerns.| 22| Helen Noel appreciated Zefrem approaching her about the issue, as she stated that Gigantic encourages employees to be forthcoming with concerns.| 23| Helen Noel stated that the only way to fix the older trucks would be to modify the fuel tanks by building steel cages around the, costing Gigantic $750 million to $1.5 billion.| 24| Helen Noel stated that the cost of fixing the older trucks would damage Gigantic financially and provide bad publicity.| 25| Helen Noel stated that fixing the older trucks would only save 8 lives in the future, according to statistics from the Department...
tracking img