Ford pinto case. The ford pinto has been cited and debated in numerous business ethics as well as tort reform case studies. More specifically it was fords decision to use the costbenefit analysis detailed in section 11 to make production decisions that translated into lost lives. The pinto was to cost less than 2000 and weigh less that 2000 pounds.
The pinto a subcompact car made by ford motor company became infamous in the 1970s for bursting into flames if its gas tank was ruptured in a collision. The ford pinto was ford motor companys entrance into the subcompact car market in the 1970s. With the rising popularity of imported japanese and german vehicles which were often smaller and more fuel efficient beginning to push into the dominance of american automakers share of the market ford designed the pinto as a viable alternative.
Doug demuro 1227625 views. Iacocca was fired the following month. Ford motor company 1981.
During crash tests which preceded the introduction of the pinto to the public it became apparent that the vehicle had a dangerous design flaw. 1977 dodge colt hemi comparison ford pinto chevy vega chevette datsun b210. Pinto case cost benefit analysis.
Ford neglected to add reinforcements to protect the easily ruptured fuel tank endangering drivers while earning the pinto a reputation for catching fire that persists today. The main controversy surrounding the ford pinto case was the ford motor companys choices made during development to compromise safety for efficiency and profit maximization. Therefore his decision not to recall the defective pinto for further improvements to its safety standards is unethical.
The ford pinto case is mentioned in most business ethics texts as an example of cost benefit analysis yet in those formats any appreciation of the complexity surrounding the issues of such decisions is overly simplified.