Ford Pinto Fires Case Study and Executive Summary Essay
John Bonner, Scotti Greenleaf, Rose Scarbrough
University of Phoenix
October 18, 2010
Ford Pinto Fires Case Study and Executive Summary
During the Late 1960’s the Ford Motor Company was one of the leading auto manufactures in the United States. Ford was credited with revolutionizing the muscle car era of the 1950’s and 1960’s. During the mid 1960’s Lee Iacocca helped Ford establish itself in the late 1960’s with the introduction of the Ford Mustang. During this time foreign auto manufactures were gaining market share in the mid to compact car markets. This was largely due to customers seeking more fuel efficient cars because of soaring fuel …show more content…
In the seventies Ford was under pressure from several external factors like the oil crisis which caused fuel prices to soar. The economy was not in its best shape as unemployment was very high and foreign competitors were making cars that cost less, weighed less and were more fuel efficient. All these factors caused Ford executives to make a decision to release a new model called the Ford Pinto which weight less than 2000 lbs and cost $2000.00. Releasing a new model into the market is process that took 43 months to complete but Ford released the Pinto in only 25 months. When issues with the gas tank in a rear end impact were discovered, the company decided that the cost of the lives of the people lost in fiery crashes was much less than the cost of installing a $6.00 part in all the Pintos the company had made.
Team Values Compared to Ford Motor Company Our team values dictate that companies produce a quality product that is safe for the end user. This means that if a company overlooks their own values and replaces them with profit greed, then they have violated their civic duty and their moral and ethical responsibility to the customers. Our values show that with the knowledge Ford had during the initial production stages they should have researched the known cause of the fires and implemented