Case Analysis Of Ford During The Era Of Arjay Miller

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Ford during the era of Arjay Miller was a good one for the company. He took his life experiences to drive some ever needed changes to automotive industry. Miller was hit by a driver in his company car, which caused the car to catch fire. This traumatic event was something that he didn’t want to happen to another person, while using any car. The company with his help was driven to produce a safer car. Miller confronted the senate lobbying for strong auto safety legislation. To add fuel to the fire because of this ford was creating a safer fabric gas tank, which was safer than the one installed on the Pinto years later. Ford was thinking about the safety of its customers at one time, but that time changed once Miller left. Once Lacocca took the …show more content…
From this analysis Ford saw that it would cost them millions less to roll defective cars off the assembly, and pay for any fees associated with the death of a person. Ford isn’t the first company out there to weight expensive production changes to the amount of punitive damages. The company waited until it wasn’t profitable anymore to settle out of court and pay the individuals off. This whole process took eight years, in 1977 ford changed the assembly line to incorporate the alterations needed to meet the standards. It’s a disgraceful thing to do within a company from a moral standpoint. Along with being unethical Ford stand would hurt them in the long run, because they didn’t think about future buyers and repeat customers. It was more about maximizing profits at that moment for the short term, and less about everything else. For them to think that this very big issue with the gas tank wouldn’t come around to bite them is astounding. Creating a profit over a short amount time and losing over years down the road isn’t the way you run a successful company that will last. The legal ramifications of knowingly sending out these cars should have been on Lacocca’s mind the whole time. How could you sell something that has I high statistic of killing an innocent

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