...Ford Pinto Case In the late 1960s Ford Motor Company developed the idea of the Ford Pinto. Foreign automobile such as Germans and Japanese manufactures dominated the small car market. Ford Motor Company did not want to stay behind in production. Chief Executive Officer, Henry Ford II and Lee Iococca’s rushed building new compact cars out in the market within two and half years which, was the Ford Pinto and the shortest production planning. Production and distribution of the 1970s Ford Pinto stirred controversy regarding safety concerns. Ford’s desire to compete with the foreign manufacturers led Ford to overlook known design flaws and their own ethics while in search of higher profits. Ford assigned a team of engineers to work on nothing but the Pinto. This team was required to stick to Iacocca’s goal of “the limits 2000”; this meant that the car could not weigh more than 2000 pounds. This became a challenge for the engineers and created concerns regarding the placement of the fuel tank. Because of the accelerated production the testing was not done thoroughly. Out of 11 Pintos subjected to rear end collisions, eight failed the test. Only the three with baffles between the tank and bumper and a special interior tank lining met safety standards. The project was almost complete, and it was not possible to make redesign revisions and meet the deadline for the release of the Pinto. The car met the requirements for the American public. It was not long before...
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...The Case of the Ford Pinto By James Abstract Product harm crisis can be defined as a sudden break in a product’s life cycle (Siomkos, G.J and Kurzbard. J. 1994). In 1971 the Ford Motor Company created a product harm crisis with the introduction of the Ford Pinto. The Ford Pinto is known to be one of the most dangerous vehicles ever produced in automotive history due to several serious design flaws. This paper will identify the factors that contributed to the product harm crisis, compare and contrast the findings of various studies on a product harm crisis and finally synthesis the research findings and provide a post mortem recommendation to the Ford Motor Company on how the Ford Pinto product crisis should have been handled. The Case of the Ford Pinto In 1968 the Ford Motor Company decided to market a vehicle that was small, inexpensive and would appeal to all car buyers. The Vice President of Ford Motor Company at the time was Lee Iacocca. Mr. Iacocca approved the plan for the Ford Pinto based on the parameters of the car weighing 2000 pounds and costing $2,000.00 dollars (Danley J. 2005). By placing these parameters on the car’s designers, they were limited from the beginning and ended up with a failed product. The key factors that contributed to the product crisis included the Ford Pinto being rushed to production in twenty five months, the timeframe to production causing designers and producers of the car to cut corners and finally...
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...the Ethical Dilemma in the Ford Pinto Case 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. Ford has argued for over three decades that The Ford Motor Company is not at fault, but rather the other motorists who happened to rear end the Pinto drivers. Many accuse Ford of rushing the Pinto into production without proper testing leaving a faulty fuel system in the car that would rupture with any rear end collision or rollover accident; this resulted in the deaths of over 500 people. Many also accuse Ford of being fully aware of the faults with the Pinto and selling it to the public anyway. Letting the people die because of the Pinto and settling with their families was more economical than recalling the vehicle and fixing the shortcomings of the Pinto. The question remains regarding whether or not Ford put a price on human lives, or if the company was not at fault for simply trying to compete with foreign car companies to put an American made fuel efficient vehicle on the road. Ford was accused of not accounting for benefit and harm in an ethical business decision, zero personal evaluation, and...
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...In 1968, the Ford Motor Company, based upon a recommendation by then vice president Lee Iacocca, decided to launch a subcompact car which is Ford Pinto. In order to gain a large market share, the Ford Motor Company plans for the project was the 2000/2000 rule. The car’s designer was designed and developed Pinto could weigh no more than 2000 pounds and it could cost no more than 2000 dollar. The Product Planning Committee instituted this rule because of the extreme competition between all of the automotive companies at the time (Daniel Boyce, n.d). Due to the Ford Motor Company was implemented the 2000/2000 rule, the car’s designers had to cut corners and restricted their ability to design a car the way it should be designed. Therefore, the Ford Pinto is known to be one of the most dangerous cars produced in automotive history due to several serious design flaws. Daniel Boyce wrote an article titled “Ford Pinto Case Information”. In his article, he claimed that “Pinto’s problems originated with the placement of the gas tank. At that time of automobile production, it was customary to place the gas tank between the rear axle and the bumper, which would give the vehicle more trunk space. The only other place the gas tank would be mounted was above the rear axle, but that eliminated trunk space, and the developers of the Pinto wanted the most practical car they could produce. The gas tank was nine inches away from the rear axle. This might not seem like a big deal, but there were...
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...Case Study Discussion and Executive Summary June 27, 2011 MGT/216 Case Study Discussion and Executive Summary This paper explores “The Ford Pinto Case” managing of business ethics. Numerous factors suggest within this research that Ford Motor Company was negligent and violated its code of ethics. To understand how relationships are affected a closer look at Ford Motor Company missions and values will align Team B’s personal values with Ford Motor Company. In this paper the study to examine are the role of people, products, and profits in the decisions made regarding the Ford Pinto. Key factors surrounding the Ford Pinto Case The death of Lynn Marie Ulrich, Dana Ulrich and Lynn’s sister, and Judy Ann along with many others was what brought the controversy of the Ford Pinto’s faulty gas tank placement to a climax. After so many unnecessary deaths the release of the Ford Pinto was the responsibility of Ford’s CEO Henry Ford II and Ford’s new president Lee Iacocca. Iacocca reduced the average production of a car from three and a half years to a little over two years. Iacocca was aware that during crash testing the Pinto’s gas tank exploded upon collision but was desperate to expedite the vehicle’s release on his deadline. After the discovery of the Pinto’s faulty gas tank, Ford’s president decided it would be costly to make changes in the Pinto’s gas tank location and its size. The Ford Pinto cost $2000 and making changes would increase its price thus possibly...
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...Case 10: Ford’s Pinto Fires: The Retrospective view of Ford’s Recall Coordinator Ford motor company, North America’s subcompact automobile company; design Pinto in 1971 in order to compete with fuel efficient Volkswagen and Japanese imports. Pinto’s major design flaw- a fuel tank prone to rupturing with moderate speed rear-end collisions- surfaced not too long after the Pinto’s entrance to the market. In April 1974, the Center for Auto Safety Administration (NHTSA) to recall Ford Pintos due to the fuel tank design defects. As a result of tests performed of NHTSA, as well as the extraordinary amount of publicity generated by the problem, Ford Motor Company agreed to recall Ford Pintos. Dennis A. Gioia was the field recall coordinator at Ford Motor Company as the Pinto fuel tank defect began unfolding. Gioia responsibilities include the operational coordination of all the current recall campaigns, tracking incoming information to identify developing problems, and reviewing field reports of alleged components failures that led to accidents. Business Ethics: In the Ford Pinto Case, what moral issues does the Pinto case raise? what is the dollar value of the human life.Business Ethics: In the Ford Pinto Case, what moralissues does the Pinto case raise? that a car that explodes when hit in the rear can be used to deliver mailBusiness Ethics: In theFord Pinto Case, what moral issues does the Pinto case raise?That businesses should not be putting a value on human life and disregard...
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...Managing Product Safety: the Ford Pinto Summary: Around 1967 Ford Motor Company decided to design a small size car called the Ford Pinto. The automobile industry at the time (and still is) was highly competitive and very cyclical. In the late 1960's, America began to see the influences of foreign vehicles. Facts Around 1967 Ford Motor Company decided to design a small size car called the Ford Pinto. The automobile industry at the time (and still is) was highly competitive and very cyclical. In the late 1960's, America began to see the influences of foreign vehicles. Prior to that, cars were bigger and less fuel efficient, allowing the Japanese to gain substantial market share with the smaller, more economical vehicles, and the need to react to this pressure was even greater at Ford. Even though they held the number two spot in market share behind General Motors, they only held a 22.3% market share compared to General Motors at 46.4%, a very significant difference. There was strong competition for Ford in the American small-car market from Volkswagen and several Japanesecompanies in the 1960's. In order for Ford to stay competitive and fight off competition, they rushed its newest car the Ford Pinto into production in much less time than is usually required to develop a car. The regular time to producean automobile was 43 months; Ford took only 38 months. Before production, the engineers at Ford discovered a major flaw in the cars' design. In nearly all rear-end crash test...
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...believe I would do following the eight-step method to ethical decision making. The first step is identifying the relevant facts. In the Pinto Fires Case, I believe there are six large facts that are the most relevant to determining whether a recall is the appropriate course of action. The first fact is that Ford Motor Company discovered the issue before the Pinto was released. With many recalls, the issues are not discovered until after the products in question are released, but Ford knew about this major issue and released the car anyways. The second crucial fact builds off the previous one – Ford knew how to fix the issue. They had found three possible solutions through their testing, but did not implement any of them. The third relevant fact is that Ford had shortened their amount of preparation time to release it earlier. This was something that had never been done before, so the fact that they cut down the amount of time they were spending on preparing this car by over a year was a recipe for disaster. The fourth fact to consider is the fact that Ford Motor Company was within the legal standards at the time. While Federal Motor Vehicle Safety Standard 301 had been proposed, it had not been adopted, so Ford’s move was legal. Furthermore as the fifth fact, in the 1970s, consumers were not nearly as concerned with safety. In fact, Ford had previously added a relatively costly safety feature only to find that it added no appeal to the consumers. The final fact is the fact...
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...not quarrel over the importance of profits. But they do quarrel over whether or not business firms have obligations beyond making profits. A consumer may be a pet owner who feeds and provides care for a beloved animal, a doting grandparent who buys toys and clothes for the grandkids, an individual who wears contact lenses or hearing aids, a patient who buys prescription medications, or vehicle owner. Should a consumer have certain expectations from the suppliers and producers of the products that he buys? Can we trust corporations that they will not produce what will jeopardize the human life? Was Ford to be blame in the pinto case? Must we wait for the characters like “Erin Brokovich” to fight on behalf of the helpless consumers? Who is to be blamed for the McDonald’s hot coffee case-the producer, the consumer or the regulators? Almost thirty years has passed since the Pinto accidents and what followed from it. We still don’t know how “safe” a...
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...the Ford Motor Company sold cars in which it knew hundreds of people would needlessly burn to death.” Mark Dowie, Author of Pinto Madness (8) One of the biggest automotive news stories in the latter part of the 1970’s dealt with tales of exploding Ford Pintos and the considerable awards civil court juries were presenting to victims of accidents involving the cars. 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. Was Ford aware of the potential problems in the framework of the Pinto? Was there an easy, inexpensive way to fix these problems? Was the Pinto fire controversy a lot of hype, or had Ford truly discounted human lives in order to save a few dollars? If Ford management really placed marketing considerations above safety, was that objective ethical and are members of management morally responsible for the preventable Pinto fire deaths? In the following paper, several sources will be used to enlighten the reader as to the controversy surrounding the Ford Pinto, facts...
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...The Ford Pinto Case Team B Management 216 May 10, 2011 Ian Finley The Ford Pinto Case The horrific tragedy that took place on August 10, 1978 involving Judy Ann Ulrich, Lynn Marie, and Donna Ulrich was a real eye opener to a lot of consumers regarding the Ford Pinto. A van collided into the back of the young girl’s car causing the Pinto to collapse, the fuel tank to rupture, and the car to engulf into flames. Donna and Lynn Marie were trapped inside and suffered to death as a result of the combustion of the vehicle. Judy Ann was able to be extracted from the wreckage but passed away several hours later at a hospital. Two months prior to the casualty, Ford recalled all Pintos produced from 1971 to 1976 to repair their inadequate gas tanks. Ford only took the initiative for the recall after it was revealed that more than fifty people had died in Pinto-related collisions. With the introduction of the Ford Pinto, Ford’s desire for competition, led the company to overlook known construction flaws and their own moral code to endure higher profits. Lynne Marie and Donna Ulrich, along with Richard Grimshaw and the unidentified neighbor; how do you assign a value to a human life? According to the Ford Motor Representatives in the Ford Pinto Fires Case, it is quite simply done with a cost/benefits formula analysis. We’d like to believe that those lost are the only people that mattered, the people whom Ford Motor Company should have considered when they turned down a $137.5...
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...Ford Pinto: A Study of Ethics In the 1960s Ford Motor Company, under pressure from stakeholders and the pressures involved in competing with the foreign vehicle market set out to manufacture a vehicle that was smaller, lighter and less expensive than the competition’s product. This vehicle was designed and moved into production within 2 years, much quicker than the 3 ½ year company norm and is still the shortest vehicle production planning schedule in history. The result: The Ford Pinto. While the Pinto was in the design phase it was decided that the fuel tank would be placed under the rear fender instead of over the rear axel to allow for more trunk room in the car. This design however, was quite flawed. The Pinto being smaller than the other American made cars was not built using the same frame design; a design that was manufactured to prevent the fuel tank from exploding upon a rear impact collision. Upon testing a serious defect was found with the placement of the fuel tank. It was determined that if the Pinto was involved in a rear end collision the fuel tank may rupture and burst into flames causing serious injury or death to the passengers. Team A will be examining the ethical dilemmas involved in the case and the solutions that we would recommend today and the solutions that would have been ethically appropriate in 1971. Lee Iacocca was the president of Ford Motor Company in 1971 and was the directive authority behind the creation of the Ford Pinto. He wanted a...
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...Ethics 368 22 June 2014 The Ford Pinto Case from a Utilitarian Perspective “Utilitarianism adopts a teleological approach to ethics and claims that actions are to be judged by their consequences” (DeGeorge 44). When looking at an decision from this view, we are to be impartial that decisions are not right or wrong by themselves, but also that we must analyze the results to determine if actions are good or bad. We know that Ford became more completive in the subcompact market from the Pinto sold in 1971 thru 1978. Ford also captured their fair share of the market for subcompact. There are several things about utilitarianism that make it appealing as a standard for moral decisions in business. One of them being “act utilitarian”, which holds individual actions to a test. “A theory developed by Jeremy Bentham and introduced to the world in his book An Introduction to the Principles of Morals and Legislation, released in back in the 17th century” (Bentham, Jeremy). There are many ways to determine the outcome of an action. Our reactions to pain and pleasure is a measure. The good that an action provides for the majority of those involved or the greatest number of people is another. Ford had a product to deliver and consumers wanted it. In determining whether this action produces more pain or pleasure for the majority, hedonistic calculus can be used. It is easier to be impartial, when using this calculus on an ethical decision. The calculus weighs all the factors involved...
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...Case Analysis: Pinto Fires Introduction Greed is the root to evil or at least the motivation behind some corporations making a good, ethical decision. The Ford Motor Company fell into a trap of greed that would cost many human lives. Before the disaster of the Pinto Fires, Ford had a reputation as being the safety pioneer in the automobile industry with additions such as the seat belts. However, as the invention of small cars began to take emerge Ford began to loose market shares to the foreign market. Ford had to do something and quick. Foreign markets were beginning to show promise with the vehicles that were going to put out on the market. The Ford Motor Company began to feel the pressure and felt that it needed to be in the limelight of the competition. Lee Iococca, the CEO of Ford, decided that it was time for a change and thus the Ford Pinto was introduced. However, the Pinto had numerous flaws that cost the Ford Company more than ever anticipated. Relevant facts During the 1960's the demand for sub-compact cars was rising on the market. Ford Motor Company, in competition with the foreign market, decided to introduce the Ford Pinto. The Ford Pinto was going to be the new wave for the Ford Company, but it was soon discovered that numerous problems existed. For example, the time that it took to manufacture an automobile was down from three and a half years to just over two years. Before production, however, the engineers at Ford discovered a major flaw in the cars...
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...Running Head: CASE STUDY Case Study Team MGT/216 09/13/10 Teacher Abstract Take a step back into the past, 1971 to be exact, imagine being a proud new owner of a popular and affordable vehicle, the Pinto. The vehicle is perfect for the tight budgeted and built by a trusted company (Ford). Then the unexpected happens, it is in a rear end accident. Upon the accident the car explodes. Sounds like a bad dream, right! (See video link in PowerPoint presentation) The following discusses a similar story that will from here forward be in reference as the Pinto Case, in which Ford was accused of being at fault for selling a shoddy car to the public. Were they at fault? What was the ethical dilemma? What were the social pressures? All of this and more is here within in detail. Pinto Case Study When Ford Motor Company had to determine what action to take in regards to the pinto many considerations were made. The company had to decide whether to install a baffle on the Ford Pinto to prevent the possibility of a puncture in the gas tank by a bolt from the bumper. The issue was found during a test done after the car was in production and on sale in the U.S. The gas tank is in the back of the car. During a rear-end test it was found that if a car travels more than 20 miles per hour and is hit from behind it is possible that a bolt from the bumper can puncture the gas tank. This can cause an explosion. Ford had the choice...
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