The cases involving the explosion of Ford Pinto's due to a defective fuel system design led to the debate of Ford’s use of their a cost-benefit analysis and its decision not to upgrade the fuel system based on this analysis. Ford failed its consumers by not applying risk management during the initial design of the Ford Pinto. Instead it calculated risk based on a strictly functional view which would result in Ford defending their decision based on their cost-benefit analysis. In comparison…
About the Ford Pinto. The Ford Pinto is a subcompact car produced by Ford between the years of 1971 to 1980. With over 3 million pintos sold over a ten year production run, the Pinto competed in the United States car market against the competition such as AMC Gremlin and Chevrolet Vega .The Pinto also competed against imported cars from global manufactures such as Volkswagen, Datsun, and Toyota. An explanation of the disaster. The Ford Pinto was one of the best-selling cars of the 1970s…
The pinto was one of Ford’s biggest mishaps that happened in the 1970s.It caused a lot of pain to a number of people even though Ford could have prevented by installing an 11 dollars part. Their thought process for not installing the part was due to the lower profit margin and the higher price that the vehicle would have been sold . If Ford were to recall the vehicles sold to the consumer then it would cause pain to a lot of people instead of causing pain to a small number of people if there…
The Ford Pinto was a sports car with a front-engine, subcompact car produced by Ford Motor Company the Models were from 1971-1980. The 1971 and 1972 were the first two-door subcompact vehicles manufactured in North America by Ford and from 1972-1980 came out with the three-door station wagon. Also was the first mass-produced US car with the rack and pinion steering which makes driving a little easier. It provides a quicker and better feedback than a standard system. Below are some pictures of…
leader by dumb luck especially when talking about big organizations or even countries. So why do countless CEO’s and CFO’s make huge mistakes? For instance the Ford Pinto incident that happened in the 1960’s where the CEO failed to recall the vehicle “Ford Pinto” from production after a flaw was discovered that made the car explode. The Ford company was was well aware of the problem before the car was even put into production…
first than customers. The auto market has a lot of competitors who perform constant research. Every business is trying to catch the interest of consumers. Ford auto company tries to stay in line with its competitors by creating a compact car model pinto. The model car was created in the late 60's with some complications. Upon the launch of the pinto several issues were reported and some have resulted in personnel death(Shaw & Barry). First, when a car mode is created, a prototype is made to…
Cases surrounding one of the biggest organizations in the automotive industry, Ford Motor Company, through its subcompact Pinto, have been one of the popular topics in the engineering field. Numerous reports involving Ford Pintos on rear-end collision with deaths and serious injuries have been made not too long after its entrance into the automotive market in 1970s. It is known that the cause of the incidents is due to Pinto’s major design flaw which is the defection in the fuel system design.…
When considering the Ford Pinto case, I don’t believe that Ford’s decision not to repair the defective design complies with the who-how (WH) framework for business ethics. Under this ethical framework, the guideline for the decision asks two basic questions: Who are the relevant stakeholders? And how do we make this ethical decision? The relevant stakeholders are the people whom the decision affects. Once a decision has been made it will impact the stakeholders either in a positive or…
Based on the case of Ford Pinto, Ford Motor Company is totally major in designing their own style of products but the safety standards was not taken seriously. This is because, the Ford Pinto already has made their own strategy in managing the finances to produce a product. Therefore, due to its style or design, and cost constraints of products, using a suitable and safe fuel tank that prevent the fire in a rear crash, was undesirable. Referring to the cost benefit approach in utilitarian…
As a former Chief Investigator for the Hardeman County Sheriff’s Department, our department faced many different dilemmas when it came to the purchasing of safety equipment for the department. The department had to begin to look at purchasing bullet proof vest for men and women of the department. There were many different strategies that were to be used during the purchase of the bullet proof vest. The Sheriff Department used the cost- plus pricing method, which is a mechanism that is used to…