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Ford motor company pinto case study
Ford motor company pinto case study
Ford motor company pinto case study
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The tragic death of the Ulrich sisters and their cousin in their 1973 Ford Pinto, led to the first time an American corporation had been charged for a criminal crime in a court case. Even though the women were involved in a rear-end collision, it was believed that a flaw in the vehicle, a gas tank rupture, was the cause of their deaths. After District Attorney Michael Cosentino presented his argument, a grand jury returned a criminal homicide charge, indicting the Ford Company for three counts of reckless homicide. This case, State of Indiana vs. Ford Motor Company, revolved around the discussion of “acceptable standards” and whether or not Ford was ethically correct in the responded to the Pinto’s mechanical issues. American businesses paid …show more content…
Consumers were shifting their focus to cheaper, smaller, and more gas efficient Japanese and German imports; there were more than a million imports sold and registered by 1970. These Japanese and German competitors were starting to dominate the small-car segment of the auto industry. American car companies knew they had to respond to keep up with this growing car sector.
Facing steep competition, Ford’s then President Lee Iaccoca decided that Ford had to keep up by creating their own budget, small-car. He wanted a vehicle that weighted no more than 2000 pounds, cost under $2000 and he wanted them delivered in a 25 month timeframe. By August 1968, plans for the Ford Pinto had been made and the development cycle of the vehicle had started. After over 3 years of production, the Ford Pinto went on sale on September 11, 1970. By the mid 1970’s, the Pinto was the bestselling small-car in America.
The Mother Jones
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The design flaw also meant that low impact accidents could have resulted in explosions that could have been deadly, even when they occur on low speeds. This could very well have been the factor that caused the Ulrich’s gas tank to rupture, causing the vehicle to catch on fire. The article also indicated that a study done by the National Highway Traffic Safety Administration (NHTSA), found that 38 cases of rear-end collisions with Ford Pintos resulted in 27 deaths. Of these deaths, 26 people died as a result of ruptured gas tanks with that escalated into fires. The investigation estimated that Ford Pinto crashes caused 500-900 burn deaths. According to Dowie, Ford was able to continue to produce and sell the same model Pinto until 1977, thanks to successful lobbying in Washington. The article is also focuses on the “Pinto Memo” and the Cost-Benefits analysis which we will go into detail
Fords president wanted to make a car that fitted the American demands, so he made the Pinto which had the price of 12,000 dollars in todays capital measurement. Everything was set, and Ford made some tests, and that is when the company realized that the design placed the gas tank in a vulnerable place. Now, we all know that no car is one hundred percent safe, but the Pinto unwillingly raised public awareness when a
When Ford introduced the Mustang in 1964 there was no immediate reaction from General Motors, but by August of '64, just four months after the Mustang's introduction, GM realized the appeal of a four seat sports car. Ironically, the Mustang was created in response to the Chevrolet Corvair Monza!
At the time that he started Ford Motors Company, most people did not drive cars, and hadn't even considered purchasing a car. Henry Ford is famously quoted saying, “If I had asked people what they wanted, they would have said ‘faster horses’”. His extremely successful Model T, nicknamed the Tin Lizzie, fundamentally changed the automotive industry. Ford understood that most of the American population was in the working class and could not afford to buy a car, so he decided to create a standardized vehicle for the masses. The Model T was durable, reliable, and most importantly, affordable. However, marketing strategies were crucial, since previously people hadn't even thought of buying a car. When Ford first introduced the Model T, he ensured that there was a great amount of publicity surrounding it in every newspaper possible to get the word out. Publicity is just as critical today if not more, and Ford understood that from very early
In the civil suit against Firefighter Johnson and the Portage Fire District, the prosecution was charged with providing evidence that negligence by both parties had contributed to the death of Ian Huffman and the attempted homicide of Olivia Duty. Prosecutors allege “Mr. Johnson was driving his personal vehicle as fast as 98 mph on State Rt. 19 on his way to the fire station in Oak Harbor just seconds before he crashed into the rear of Ms. Duty's car at Portage River South Road” (Feehan, 2012, para. 6). The posted speed limit on Portage River South Road was 55 mph at the time of the accident (Curt, 2012). The defense alleges that Firefighter Johnson was using his lights and sirens and that Ian Huffman was not wearing a seatbelt at the...
The First production of the Model T came out on October 1, 1908 at the Piquette Avenue Plant in Detroit. (www.hfmgv.org) At the time the Model T was going for a price around $850 and by the Twenties a newer model could be bought for at a price of $275.(Gordon) Although having a Model T, was a sign of wealth, it was awfully cheaper than other cars being manufactured by the other manufactures. The Model T was different from all other cars being made at the time because Ford found a way to make his car affordable. The Low Price of the Model T sent a boom around the nation. "Over the next 19 years, Ford would build 15,000,000 automobiles with the Model "T" engine, the longest run of any single model apart from the Volkswagen Beetle." (www.hfmgv.org) "In 1900 America produced 4,100 automobiles; in 1908, the year of the Model T's advent, the number had risen to 63,500; in 1909 it had nearly doubled, to 123,900. In 1916 it stood at 1,525,500." (Gordon)
In the United States, modern car manufacturing has been historically dominated by the American companies including Ford Motor Co., Chrysler Group LLC, and General Motors Co. These three companies, known as the Detroit Three, controlled 95% of the market in the 1950’s and the dominance continued until the beginning of the 21st century. In the 1980’s Japanese auto manufacturers entered the United States, a decade later the Germans, and finally in 2000’s the Koreans. By the end of 2009, the Detroit Three only accounted for 45% of the total U.S. auto market. Another factor that had influence on this was constant fluctuations in gasoline prices and price sensitive consumers. According to the U.S. Department of Energy, gas prices hit record high averaging $3.07 per gallon in May 2007 and kept climbing up to $4.08 in July 2008. As gas prices kept increasing, consumer buying trends have been changing. In 2006 sales for SUVs, pickup trucks, and vans dropped 16%, while the market for compact cars rose by 3%. Unfortunately, the Detroit Three were not prepared for this since their...
Mahoney was traveling north in the southbound lane at an extremely high amount of speed. The right front of the pickup truck hit the right front of the bus, breaking off the bus’s suspension and driving the leaf spring backward into the gas tank mounted outside the frame, just behind the front door. The spring speared the sixty-gallon tank, which had just been filled ten minutes earlier, punching a two and a half-inch hole in it. The gas tank caught fire and killed twenty-seven of the sixty-seven people on board. If the pickup had hit a few inches to the right, it would have been stopped by the bus’s frame rail instead of shearing trough sheet metal toward the fuel tank.
Foreign markets were beginning to show promise with the vehicles that were going to put out on the market. The Ford Motor Company began to feel the pressure and felt that it needed to be in the limelight of the competition. Lee Iococca, the CEO of Ford, decided that it was time for a change and thus the Ford Pinto was introduced. However, the Pinto had numerous flaws that cost the Ford Company more than ever anticipated.
BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.
In 1896, Henry Ford shed the light of a new age onto the idea of transportation with his quadricycle. It used four bicycle wheels, and a four-horsepower engine. There was no steering wheel, only a simple tiller. The vehicle had only two forward gears, and no reverse. Three years later, Ford joined the group that founded the Detroit Automobile Company, though he left within the year. In 1903, the Ford Motor company was born, with 12 investors, and 1,000 shares. Later, in 1908, Ford introduces the Model T, which he sold 15 million of
He looked through hundreds of books on bicycles and books on horse and buggies. Ford decided to use wheels from a bicycle, and the same steel framing. From the horse and buggy, he took the idea of the shape of the actual frame. He also made a handlebar that was in the same place as horse rider for a buggy. When Henry For opened his first automobile plant, not only did it bring much attention to the industry, but it also made people want to own a car so that they looked “cool”. People knew that this was going to be a successful industry so they wanted to work in it. Even though most people think that the first true car ever made by Henry Ford was the Model A; they are actually being deceived. Henry Ford’s first actual cars were made for racing. Only a year or so later did Ford start making Model A’s.
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).
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
The Mustang got its name from the World War II P-51 Mustang fighter plane (Harris). The “five generations” evolved each year model until, in response to the 1971-1973 models, Ford returned the car to its original size and concept in 1974 (Bowling). The first generation of the Mustangs appeared in 1964 and lasted through 1973. On March 9, 1964, the first Mustang, a Wimbledon white convertible with a 260 cu in V8 engine, rolled off the assembly line in Dearborn, Michigan. A month later on April 17, 1964, the Ford Mustang made its world debut at the World’s Fair in Flushing Meadows, New York (Kelly).
BMW soon realized that many threats impacted its market share in U.S. The Japanese auto manufacturers started building plants in the U.S. to deal with the increased U.S. demand at a lower cost than importing their cars. BMW's U.S. export situation was made even worse by the appreciation of German mark and additionally the higher German labor costs. As a result, the decision was made in 1991 to bui...