Case Study Of Ford Pinto

Introducing the Pinto Fires Case
Jamai Bridger
California College San Diego

The Pinto Fires Case centers around events that transpired more than 30 years ago. The impact of these events proved extremely important to America business history. Fortune Magazine called it one of the 20 business decisions that “helped create the business world as it is today.” (Managing Business Ethics: Straight Talk About How to Do It Right) The resulting aftermath directly contributed to the development of both consumer activism and protection. (Managing Business Ethics: Straight Talk About How to Do It Right)
Relevant Facts Production and distribution continued despite recognizing that a serious fire hazard existed when the Pinto suffered a collision

(Case: The Ford Pinto, n.d.) A report focusing on fatalities was included and illuminated the cost associated with technical improvements to the vehicle. An estimate was even applied to an estimate of how many people could be killed and even assigned a dollars-and-cents figure to the value of a human life. (Case: The Ford Pinto, n.d.) Ford determined that the overall cost greatly outweighed the benefits and decided against making any safety improvements. This decision resulted in numerous fire-related deaths to occur between 1971 and 1978; sworn testimony by Ford engineers stated that 95% of these fatalities could have been avoided if Ford had simply altered the location of the fuel tank. (Case: The Ford Pinto,

This affected Ford Motors as a company, all stockholders with Ford, and the associated insurance companies representing Ford and consumers. These events forced guidelines and regulations by the government for the automobile industry to implement change and new standards. The loss of life is appalling and the suffering by all families involved is unspeakable.
Possible Consequences of Alternative Action Ford could have avoided being at the helm of providing consumers with a vehicle that took human life if the decision to recall had been made. The cost would have been potentially higher and business might have suffered, but these are consequences that would have been short-lived. The cost for future recalls of vehicles could be considerably lowered because of the standard that would have been adopted had they gone forward with recalling the Pinto. A positivity would surely have been attached to the credibility and reputation of Ford following the recall and public consensus of that nature would be long-term. The decision against recall resulted in the loss of life. The doorway was then opened for lawsuits that ultimately exceeded that once substantial dollar figure Ford was desperate to save. Ford carries a horrific connection to tragedy and effected in long-term, perhaps even permanent damage to its