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Car industry history essay
Car industry history essay
Car industry history essay
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Ford Pinto Case
The humankind history has probably never known one completely successful product - a product that would never break down or malfunction. "The ideal product is a myth because in reality, there has been and always will be mistakes and flaws in the technology and production. When there are only a small percentage of defective pieces, it is easy to blame the individual product. It is when there is repetitive malfunction of the same system under the same conditions that people begin to ask the question." (Birch, et. al. 21) Who is at fault? Is it the production line error? Is it the engineer who designed it, or the person who developed the process? Ford Pinto is one of the examples of such repeated malfunction of a product, which led to death of many consumers.
In accordance with the case, the American automobile industry was constantly challenged by the foreign car manufacturers in 1960-70s through offering better and yet cheaper cars. Another problem that was haunting the industry was the gas consumption, which, in the period of the Arab oil embargo in 1970s, became a really critical issue. The survival for the American automobile industry was in designing and building of subcompact cars which would be affordable for masses, consuming as less gas as possible. Such car for the Ford Motor Company became Ford Pinto that was presented to public in September of 1970.
Since competition between domestic automobile manufacturers was very intense, the Ford Motors Company decided to build Ford Pinto in only 25 month versus normal 43 months. The General Manager of Ford Pinto project, Lee Iacocca, was so obsessed with the idea of creating an affordable car and winning the market, that he specifically set a certain goal...
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Birch, et. al. "The Ford Pinto Case: A Study in Applied Ethics, Business, and Technology", Boston: McGraw Hill, 1994
Mallor, et. al. "Business Law and the Regulatory Environment", 11th edition, Boston: McGraw Hill, 2001
Mark Dowie. "Pinto Madness" Mother Jones (Sept. 1977): 38 pars. 28 Sept. 1977 http://www.motherjones.com/news/feature/1977/09/dowie.html
Ford Pinto Case: Valuation of Life as it Applies to the Negligence - Efficiency Argument, Christopher Leggett, 1999 University of Illinois. Spring 1999
http://www.sprynewmedia.com/clients/wakeforest/Papers/1999/Leggett-pinto.html
Velasquez, Manuel G. Business Ethics: Concepts and Cases. Upper Saddle River, NJ: Prentice Hall, 2002
The automobile went from being a toy for society’s elite to being an essential item within the economic reach of nearly every American, all thanks to the hard work and ingenuity of Henry Ford. His dedication to quality and attention to detail earned him not only dozens of racing titles, but also the reputation of a respectable businessman. Ford understood his market so well that he knew what the people wanted before they could even ask for it, always ahead of the curve. Ford was a pioneer of American commercialism, and so his production methods were centred around efficiency and mass production, thus allowing him to increase productivity and decrees cost to meet the demand of the masses. Lastly, consideration of the working class and philosophy of raising the wages instead of raising the price point and focusing only on profit. There are a great many lessons to be learned from distinguished businessmen in history, and Henry Ford is no
To say that Henry Ford dilly-dallied around before finally establishing a serious car company would be invalid. The 40 year old man had been acquiring valuable knowledge regarding business, engines, management, and most importantly cars. Now it was time to take a leap of faith.
The unfortunate truth is that cases like the Ford Pinto have always taken place and will continue to occur in our capitalistic society. Although placing a value on an individual’s life and operating within the gray areas of the law is without a doubt unethical, it is considered by many corporate leaders as simply being good business. According to Hoffman, corporations often seek to meet the standards in place without exceeding them, in order to maximize their profit and increase their value . Although it is unfeasible to create a vehicle that will never result in the loss of a life, it is possible to make one that is safe by anyone’s standards.
The birth of the automobile was truly something special. Once a far fetched dream is now what many people believe to be the back bone of the American economy. When people think about the automobile the name that comes to mind is most usually Henry Ford. Although he is not credited with the invention of the automobile, Henry Ford played a crucial role in the development of mass production. The automobile was first invented Europe in 1771 with a top speed of 2.3 miles per hour. A man by the name of Gottliech Daimler produced what was known as the milestone car in 1889, this vehicle traveled at 10 miles per hour (Brown, 105). Not more then a handful of these cars were produced over seas. Not many people had ever seen one, let alone had one. It wasn’t until Henry Ford invented the assembly line, that anyone knew what a car was. Henry Ford and the invention of the assembly line altered the American economy and revolutionized travel everywhere.
Americans soon not only had one car, but they had two! Teenagers now drove cars as part of the iconic 1950s culture with their friends. Fast food places like In-N-Out and McDonalds were built on the fast paced nature of the automobile. The US interstate was built for more convenient travels, and also for cold war preparations. Having a car was part of the American way of life and the American way was to buy an American car that was made in Detroit Michigan. The best selling car companies of the 1950s were Chevy, Ford, Pontiac, Buick, and Oldsmobile. (Zyla, 1) If someone drove a car that did not sport an american badge on the grille, they were a
When Henry Ford was born on June 30th, 1863, neither him nor anyone for that matter, knew what an important role he would take in the future of mankind. Ford saw his first car when he was 12. He and his father where riding into Detroit at the time. At that moment, he knew what he wanted to do with his life: he wanted to make a difference in the automobile industry. Through out his life, he achieved this in an extraordinary way. That is why he will always be remembered in everyone’s heart. Whenever you drive down the road in your car, you can thank all of it to Henry Ford. Through his life he accomplished extraordinary achievements such as going from a poor farm boy to a wealthy inventor who helped Thomas Edison. When he was a young man, he figured out how to use simple inventions, such as the light bulb. He then taught himself the design of a steamboat engine. His goal was to build a horse-less carriage. He had come up with several designs and in 1896, he produced his first car, the Model A. When Ford’s first car came out, he had been interviewed by a reporter and when asked about the history of the car, he had said “History is more or less bunk.” Ford worked in Thomas Edison’s factory for years and the left to become an apprentice for a car-producer in Detroit. While working there, he established how he was going to make the car.
When we consider the case of the Ford Pinto, and its relative controversy, through the varied scope of ethical viewpoints, the results might surprise us. From a personal standpoint, as a consumer, the idea of selling a vehicle to the masses with such a potentially devastating flaw is completely unethical. When we consider the case from other directions and other ethical viewpoints, however, it makes it clear that often ethics are a matter of perspective and philosophy. It’s also clear that there are cases where more information will muddy the waters, rather than clear them.
The first automobile produced for the masses in the US was the three-horsepower, curved-dash Oldsmobile; 425 of them were sold in 1901 and 5,000 in 1904--this model is still prized by collectors. The firm prospered, and it was noted by others, and, from 1904 to 1908, 241 automobile-manufacturing firms went into business in the United States. One of these was the Ford Motor Company which was organized in June 1903, and sold its first car on the following July 23. The company produced 1,700 cars during its first ...
On the other hand, some people would lobby that Ford did nothing wrong releasing the Pinto early and knowing it had a major safety flaw. There was no National Highway Traffic Safety Administration rear-end impact standards at the time,(DeGeorge 298) so Ford did not break any safety laws. Also, Ford was found innocent of criminal homicide in the Ulrich case.(Waters) Even though both of these statements are true, before the release of the Pinto, Ford was an active lobbyist against new safety standards; this is a big red flag. (Trevion, 66) Ford may have won in the Ulrich case, but they lost many other cases including Grimshaw vs. Ford Motor Co. (Ford Pinto)
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and cases: 2011 custom edition (9th ed.). Mason, OH: South-Western Cengage Learning.
The automobile changed American life, but the process was gradual. Though historians argue the date and inventor of the first automobile, we can say that Henry Ford’s creation of his Ford Motor Company in 1903 marked perhaps the major milestone of the early twentieth century automobile industry in America and around the world. Five years after the company’s inception, Ford’s legendary Model T of 1908 would revolutionize transportation and the world economy. Before the Model T, automobiles in the US were associated with only the wealthier class. Ford sought to make cars available to every American. His cars would assume the general build that continues to characterize automobiles today, and his innovation and system of production would make him a legend.[i] The automobile led to an extremely advanced system of roads and contributed to an American mentality of freedom to move.[ii] Early drivers saw both benefits and difficulties as the automobile became the standard American mode of transportation.
Ford had a solution to fix the problem in the Pinto car, but it was cheaper for Ford to pay off the lawsuits then to pay to recall all the cars and fix them. Ford choose to keep the cars out for sale. This endangerment is morally wrong and needed to have consequences more severe than to allow payouts. Although the results, Ford though the payoff of the lawsuit was smarter to save them money, but the ethical codes we not being kept by not being honest in making the right
Until recently, Ford Motor Company was in possession of most of the production and distribution of all materials and parts needed to produce cars. Ford Motor Company owned everything from steelworks needed for the frame of the car down to the rubber farms needed for the tires and hoses. Ford Motor Company even retained railways so that supplies and finished cars could be transported to their intended destination (Muthusamy, 2014). However, owning all the supplies in the world would be ineffective if the company was not capable of using its resources in the appropriate manner. For that reason, Ford Motor Company revolutionized the Industrial Era with its concept of the assembly line which would enable it to dominate its industry for a long
Treviño, L. K., & Nelson, K. A. (2007). Managing business ethics: Straight talk about how to do it right Fourth ed., Retrieved on July 30, 2010 from www.ecampus.phoenix.edu
Shaw, W. H., & Barry, V. (2011). Moral Issues in Business (Eleventh ed., pp. 230-244).