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
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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
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following: 1. Identify the relevant facts of the Ford Pinto case: In 1970 Ford introduced the Pinto, a small car that was intended to compete with the then current challenge from European cars and the ominous presence on the horizon of Japanese manufacturers. The Pinto was brought from inception to production in the record time of approximately 25 months, where a normal car usually takes 43 months. This showed an expedited time frame for the Pinto. On top of time pressure the team was also required
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Right or Not Right? Back Ground In 1970’s, Ford had been criticized by the public due to a defective fuel system design. Although Ford had access to a new design which would decrease the possibility of the Ford Pinto from exploring, the company chose not to redesign the system, which would have cost $11 per car, even though the analysis showed that the new system would result in 180 less deaths (1999, The Valuation of Life As It Applies To the Negligence-Efficiency Argument). The company defended
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“Ford Pinto Case” After watching this video about the Ford Pinto Case, I think their decision was no ethical, because of the cost-benefit analyses they applied, trying to determine if the flaw in Ford Pinto automobiles is worth the financial risk in comparison to the value in human life, which is unconscionable and indefensible. Ford estimated that each dead that could be avoided would be worth $200.000 and each major burn injury $67.000 and average for repair cost of $700 per car involved in
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21 June 2013 The Ford Pinto Case The big question which needs an answer in this case is if Ford should have installed a device to prevent the Ford Pinto from exploding into a fiery ball upon impact for the safety of its occupants. Before an answer can be determined, let’s look at the facts of this case. “In the late 1960s, American automobiles were losing market share to smaller Japanese imports (DeGeorge 298).” Ford felt the need to compete to keep ahead domestically so it developed the subcompact
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The Ford Pinto Case Back in the 1970s the Ford Pinto was debuted without regard to proper safety features and concern for proper ethics while producing this automobile. Buyers wanted lower pricing and bigger trunk space more than the consideration for safety. Lee Iacocca, president of Ford, ran the business striving for higher profits and cutting costs. His lack of interest for human life initiated many lawsuits against Ford and, in the end, was a far bigger cost than installing safety features
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Appendix 2: Ford Pinto Case and Cost Benefit Analysis Edited by Richard Brooks In 1968 in response to strong foreign competition, Ford decided to build a subcompact car — the Pinto — on a 2×2×2 plan (2,000 pounds, $2,000, in 2 years). In pre-launch tests, Ford discovered that rear end collisions propelled the gas tank onto the real axle, which had protrusions that ruptured the tank and caused the car to catch fire. Yet Ford did Figure 1: Ford Pinto not modify the Pinto’s rear axle. Nor did it
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FORD PINTO CASE The Ford management has chosen to be unethical and morally unworthy to be trusted with the lives of its customers. Can you just imagine the number of individuals riding every day in the cars that they produced, who are unaware that they could be in an injury any moment? Ford management has chosen not to follow the safety guidelines and standards in producing such products because at that time, the government is still not that strict in implementing such rules. And because of their
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Ford Pinto Case Solution The Ford Pinto was a disaster waiting to happen. The damage that the Lee Iacocca and Ford executives allow to happen was not only tragic but they were preventable. Because of Lee Iacoccas hurry and pressure of the creation of the auto was high, and this lead to the unfortunate dilemma. The Ford Pinto study has shown that Iacocca put to high of a demand on the team that was responsible for the creation of the Pinto. Fist the Pinto should never gone into production
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