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General motors ethical issues
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Now, let’s consider about short-termism of this case, it is not the failure of our current approach to promote ethical business conduct in my opinion. Because there are no technical problem or issue with the car itself, the car is normal and not had any damage or broken engine at all. Nobody was being hurt, injured or killed by the “defeat device” in the car’s engine. So that this is not a really big problem at all because of no death informed. I consider this aspect because there was another case which is also in car industry but people had been killed up to thousands number. This case is conducted by Chevy Corvair model of General Motors which is the most powerful car corporation in the United States. There is even a book called “Unsafe at …show more content…
He wrote this book because he followed up the case and tried to make sure everyone drive safe car. He stated in the book that from 1938 to 1954, about 5,000,000 reported accidents annually killed 40,000 deaths, and 1,500,000 injuries. It also indicated the problem coming from GM Motors who decreased the cost of necessary safety features of the Chevy Corvair model to increase their own profit. They created cars based on the idea that rear-engine car is more fun when crash than drive, and they created rear-engine car in the purpose of selling the component to make it cool and more easily to bump I think. However, they did not spend money on the swing-axle rear which helps drivers manage car easily. That is the reason making Chevy Corvair of GM Motors at that time killed lot of people. As in the “Unsafe at Any Speed” above stated regarding to the problem of GM’s misconduct: “the Corvair's single-piece steering column could impale the driver in a front collision.”, and “It leaked oil like a derelict tanker. Its heating system tended to pump noxious fumes into the …show more content…
The CEO apologized to Nader in front of Senate and paid the fine. At the moment, he is working and teaching, but those experiences will always be in his mind. Some articles criticized that Nader telling a exaggerative story about GM Motors, they provided the evidence by stating the National Highway Traffic Safety Administration (NHTSA)’s result reports when they tested these cars of GM. The results turned out that
Preston Tucker’s dream above all other things was to make a safe car. Because of this the Tucker 1948 had many revolutionary safety features. Some of these features wouldn't be used for some time by other manufacturers. Every detail mattered so with safety being most important the engineers designed some new components. The instrument panel had all the controls within easy reach of the steering wheel and the dashboard was padded. The initial plans for the car also included a steering wheel that would retract in an accident. Kenneth Lyman even filed Patent number 2511165 for it on Dec 5, 1947 on behalf of the Tucker Corporation (Lyman, n.d.). This device unfortunately never had a chance to make it into the 50 vehicles produced. Even though it was symbolic of the innovative ideas they had. Some of them due to time constraints...
This design defect, however, does not mean that the plaintiff is awarded since the design defect was not the proximate cause of injury for Cheyenne. Due to Gordon’s modification of the seat belt, Ford is not liable for the injuries that Cheyenne suffered. Stark ex. rel. Jacobsen v. Ford Motor Co., 365 N.C. 468, 472, 723 S.E.2d 753, 756 (2012). The evidence supports the idea that her spinal cord injury was a direct result of placing the seat belt behind her back. Preemption as a theory that would bar the Starks from recovering does not apply in this case, since the federal government’s regulations do not make manufacturers immune to design defect claims. Stark’s claims of inadequate warnings likewise do not apply since the misuse of the product, it’s alteration, is the proximate cause of injury. Had the modification of the seat belt not been the proximate cause of injury, and instead a contributing factor, the court might have decided that Stark was only twenty percent responsible for the injury that occurred. This amount of contributory negligence would not have barred them from recovering, according to Indiana Statutes, and Ford would have been liable for the
As expressed in Southern Cotton Oil “one who authorizes and permits an instrumentality that is peculiarly dangerous in its operation to be used by another on the public highway is liable in damages for injuries to third persons caused by the negligent operation of such instrumentality on the highway by one so authorized by the...
However, It is unclear how Mr. Bragg ends up with the conclusion that the SUV alone represents personal independence. The very reason for owning a care is for personal independence; therefore, the SUV is not the sole means to achieve this. Additionally, the paper goes on to state that the secondary purpose for the SUV is personal protection. Many cars now have improved technologies for the safety of passengers. In any case, SUVs have had to drastically revamp there already tarnished track record.
In 2007, Harley Davidson was the world’s most profitable motorcycle company. They had just released great earnings and committed to achieve earnings per share growth of 11-17% for each of the next three years. Their CEO of 37 years, James Ziemer, knew this would be an extremely difficult task seeing Harley’s domestic market share recently top off at just under 50%. The domestic market was where Harley’s achieved the most growth over the past 20 years and with it leveling off, where was Harley going to get the 11-17% was the million dollar question.
As a result, GM’s developer Edward Cole was well aware of the major design defect of the excessive weight in the rear causing General Motors to face 106 Corvair liability lawsuits involving injuries and death. After the publication of Nader’s book General Motors hired a private detective in New York to gather information and discredit Nader. Nader sued General Motors for invasion of privacy winning millions in the lawsuit. Furthermore, CEO James Roche promoted Edward Cole the Corvair design engineer in question, to GM’s President. Did the CEO Roche of General Motors make a sound ethical decision with the promotion?
Thorr Motorcycles is a company that manufactures 200,000 motorcycles a year. It also licenses T-shirts, shoes, leather goods, toys, and other consumer items. The company currently has a high-brand image manufacturing high-end motorcycles and owns approximately forty percent of market share.
... The "Automobile". American Decades. Ed. Judith S. Baughman, et al.
Zuber, Kenneth. “Death at the Wheel.” AutoWeek. 4 Sept. 2006: 22. Web. 28 Apr. 2010.
Paramedics on scene took both passengers of the vehicle to a local hospital for treatment for possible rib fractures, concussion and disorientation. The driver’s head struck the side window, causing a cut. There were several witnesses to this event and three of them made statements to the military police. Both passengers of the vehicle have currently filed suit against the company for compensatory damages. Compensatory damages are intended to provide relief to the affected individuals.
There was strong competition for Ford in the American small-car market from Volkswagen and several Japanese companies in the 1960’s. To fight the competition, Ford rushed its newest car the Pinto into production in much less time than is usually required to develop a car. The regular time to produce an automobile is 43 months but Ford took 25 months only (Satchi, L., 2005). Although Ford had access to a new design which would decrease the possibility of the Ford Pinto from exploding, the company chose not to implement the design, which would have cost $11 per car, even though it had done an analysis showing that the new design would result in 180 less deaths. The company defended itself on the grounds that it used the accepted risk-benefit analysis to determine if the monetary costs of making the change were greater than the societal benefit. Based on the numbers Ford used, the cost would have been $137 million versus the $49.5 million price tag put on the deaths, injuries, and car damages, and thus Ford felt justified not implementing the design change (Legget, C., 1999). This was a ground breaking decision because it failed to use the common standard of whether a harm was a result of an action on trespass or harm as a result of an action on the case (Ferguson, A., 2005).
This case involves Ford and the Japanese tire manufacturer, Bridgestone/Firestone. The Ford Explorers which were prone to rolling over, came equipped with Firestone defected tires. The tire seemed to have a defect that caused the tread to separate from the whole of the tire and cause the vehicle to flip. Although Firestone knew about such defects, they continued to produce despite knowing the deadly consequences that lay behind their actions. The Explorer also had a bad reputation of rolling over and Ford knew it. As a result, fatal accidents occurred from these two combinations. Since this was a very serious safety issue, Ford and Firestone were ordering the recall of problem tires in Saudi Arabia, Venezuela and Asia but not in the United States. So, did the company act ethically in resolving this crisis? No, the companies failed to fix the problem in the United States. According to NHTSA, the tires have caused many deaths and injuries in the United States. In fact, these accidents would have not occurred if both companies have solved the problem immediately. Thus, despite the obvious safety issues, there were also fundamental ethical issues.
Despite their conception in 1903, Harley-Davidson and the motorcycle industry as a whole didn’t really take off until after the Second World War. Many people rode motorcycles during the war, with Harley-Davidson themselves supplying almost 90,000 motorcycles for the U.S. military during this time. Many veterans chose to purchase motorcycles upon returning home, as they enjoyed riding during the war and wanted to continue riding in their civilian life. This generation known as the "baby-boomers" quickly became the main target audience for many of Harley-Davidson’s marketing efforts. With sales increasing and the industry growing, many "motorcycle clubs" and "rallies" were introduced. Unfortunately, due to the lewd behavior displayed by most people associated with these clubs and rallies, bikers typically had an image of being disorderly and raucous. Harley-Davidson’s image itself took a big shot due to the Hells Angels. This was a motorcycle gang wishing to become notorious for "drug trafficking and other organized crime activities," who used only Harley-Davidson motorcycles. All of this combined to lead to a decline in demand and sales throughout the entire industry during the 1960’s. The industry was really helped out with the release of the Hollywood film Easy Rider in 1969. This film helped change the public’s perception of bikers and sparked an increase in motorcycle demand which has lasted to this day.
...ge James Selna for pretrial proceedings (Gorman, S. 2010). Because the Toyota Corporation may have been unethical in its business practices, the corporation suffers the loss, and now has a faulty reputation.
...nformed decision on the matter. I have also given some of my own personal views on the matter along with how it is similar to Bernie Madoff’s Ponzi scheme. Along with my own morals and ethics are and how all of this relates to the automotive industry.