Facts
Around 1967 Ford Motor Company decided to design a small size car called the Ford Pinto. The automobile industry at the time (and still is) was highly competitive and very cyclical. In the late 1960's, America began to see the influences of foreign vehicles. Prior to that, cars were bigger and less fuel efficient, allowing the Japanese to gain substantial market share with the smaller, more economical vehicles, and the need to react to this pressure was even greater at Ford. Even though they held the number two spot in market share behind General Motors, they only held a 22.3% market share compared to General Motors at 46.4%, a very significant difference.
There was strong competition for Ford in the American small-car market from Volkswagen and several Japanese companies in the 1960's. In order for Ford to stay competitive and fight off competition, they rushed its newest car the Ford Pinto into production in much less time than is usually required to develop a car. The regular time to produce an automobile was 43 months; Ford took only 38 months. Before production, the engineers at Ford discovered a major flaw in the cars' design. In nearly all rear-end crash test collisions the Pinto's fuel system would rupture extremely easily. Safety was not a major concern to Ford at the time of the development of the Pinto. Lee Iacocca, who was in charge of the development of the Pinto, had specifications for the design of the car that were uncompromising. These specifications were that "the Pinto was not to weigh an ounce over 2,000 pounds and not cost a cent over $2,000." (1) Any modifications even if they did provide extra safety for consumers that brought the car closer to the Iacocca's limits were rejected.
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(1) Mark Dowie, "Pinto Madness," Mother Jones, September/October 1977.
Mallor, et al., "The Legal Environment of Business." Regis University Textbook 2005
(2) IEEE Code of Ethics Website - http://www.ieee.org/portal/site/mainsite/menuitem.818c0c39e85ef176fb2275875bac26c8/index.jsp?&pN
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Fordism changed American industrial and consumer in many ways such as Henry Ford developed new techniques of car manufacturing and marketing that made it easier for ordinary American citizens to try themselves. After three years of establishing his company “Ford Motor Company” in 1905, Ford introduced to the American people “Model T” for which was a light-weight vehicle that can handle to cruise the country’s poorly maintained roads. In Europe for which the car that is mostly used over there is the “Mercedes” for which was targeted for high-class people of society over there and were superior in craftsmanship in the car manufacturing; however, Ford focused on mass production
Henry Ford’s development of the single and unchanging automobile model meant the possibility to concentrate upon a single cheap car for the masses. When The Ford Company began to make Model C for $900, Model F for a thousand, and Model B for two thousand, the profits began to drop more and more each year and progress was being made backwards. The Ford factory was taken control over by Henry who stopped the production of
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
After the Ford Motor Company was founded, they began assembling cars in July 1903 at a plant on Mack Avenue, Detriot. It was not until five years later, in 1908, when the famed Model T was introduced. The constant growth in demand for this vehicle was the reason that Ford developed a mass-production method in order to create what we now know as economies of scale, where in producing
Observed as a technological mastermind, Ford commenced experiments involving machinery from the time he was adolescent to launching his career working at the Edison Illuminating Company. He examined internal combustion engines and gasoline buggy ideas, eventually resulting in removing himself from Edison’s company and his introduction into the emerging automobile industry. Following in 1903, he established the Ford Motor Company, which expeditiously became a leader in the automotive industry and would gain extensive wealth within only a few decades. While other manufacturers strove to produce automobiles to be extravagant and luxurious predominantly for the wealthy, he immensely focused on efficient mass production of durable, affordable vehicles for the expanding middle-class market. The car should be like a fine watch," Ford said.
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.
Model T’s were everywhere in America, even long after Ford stopped production in 1927. (Henry) While Ford was the number one brand, selling the most cars throughout the early 1900’s, the Model T created a new industry that is distinctly American; the auto industry. Three manufacturers, Ford, General Motors, and Chrysler dominated the American auto industry, and all three companies still produce cars today. The Model T gave birth to the competitive auto market. To this day, car companies in America are constantly racing to innovate, improve, and outsell their competitors. Manufacturing of cars “became the backbone of a new consumer goods-oriented society. By the mid-1920s it ranked first in value of product, and in 1982 it provided one out of every six jobs in the United States.” (history –idk yet) The demand for cars also resulted in a booming petroleum industry, and a high demand for metals, like steel. ( History idk yet) Furthermore, with so many people driving cars, construction of roads was necessary. The popularity of automobiles set off a chain reaction that created new opportunities all across the country. All sections of the modern automotive industry, from marketing to manufacturing, as well industries like petroleum refining, steel production, and road construction, can trace their beginnings to the Ford Model
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.
The Automotive Industry in the United Stated was the market leader until the early 60s, however, many countries have begun to invest in the car industry, in particular, the countries of Europe. Despite the American automotive industry has been a market leader in the beginning of the century, the United States opened a new period in the history of the American automotive industry through an efficient production model invented by Henry Ford. The cars were manufactured on a large scale which led to the reduction in costs. In the decade of 30, the United States was present in several parts of Europe marking the American power in the industry. In the last 50 years, European companies have begun to expand their products to the market international. Practically, this same period, the Japanese industry began to expand its production to foreign markets. In the 50 's, the United States held approximately 85% of the world production car, however, in 1960, production of the US automotive industry dropped to 55% (Calandro). In this period, the production of European countries and Japan grew
Ford’s production plants rely on very high-tech computers and automated assembly. It takes a significant financial investment and time to reconfigure a production plant after a vehicle model is setup for assembly. Ford has made this mistake in the past and surprisingly hasn’t learned the valuable lesson as evidence from the hybrid revolution their missing out on today. Between 1927 and 1928, Ford set in motion their “1928 Plan” of establishing worldwide operations. Unfortunately, the strategic plan didn’t account for economic factors in Europe driving the demand for smaller vehicles. Henry Ford established plants in Europe for the larger North American model A. Their market share in 1929 was 5.7% in England and 7.2% in France (Dassbach, 1988). Economic changes can wreak havoc on a corporation’s bottom line and profitability as well as their brand.
In the 1960s, foreign goods posed a momentous threat to the American businesses. Imported goods were sold at a substantially inexpensive price. Ford Motor Company made the decision to combat this threating presence by introducing the Ford Pinto. According the Shaw, “Eager to have its subcompact ready for the 1971 model year, Ford decided to compress the normal drafting-board-to-showroom time of about three-and-a-half years to two. The compressed schedule meant that any designed changes typically made before production-line tooling would have to be made during it.” (Shaw, p.
The Ford Motor Company inspired a manufacturing revolution with its mass production assembly lines in the early 20th century. Ford and Lincoln are one of world's most well known automotive brands, most known for the Ford Mustang, and F-Series pickup trucks. Henry Ford incorporated Ford Motor Company in 1903 at Dearborn, Michigan. Ford Motor Company is known as one of the largest automobile companies in the world. (DATAMONITOR: Ford Motor Company, 2010 p. 4). Since 1980, Ford has been able to remove $5 billion from its operating cost (Brady, 1986, p. 8). The Ford Motor Company has around 181,000 employees and 65 plants worldwide using the automotive brands Ford and Lincoln (FMC Annual Report 2013, p.149).
When he was 28 Ford took a job with Thomas Edison's Detroit Illuminating Company, where he became chief engineer. In his spare time he began to build his first car, the Quadricycle. It resembled two bicycles positioned side by side with bicycle-like wheels, a bicycle seat, and a barely visible engine frame. Some said it bore a resemblance to a baby carriage with a two-cylinder engine. In June 1896, Ford took an historic ride in his first automobile that was observed by many curious Detroit on-lookers. The Quadricycle broke down in a humiliating scene.
4. Unknown. Ethics. Santa Clara University Markkula Center for Applied Ethics. 29th March 2004. http://cseserv.engr.scu.edu/NQuinn/COEN288/EngrHandbook_Ethics.pdf