Ford Pinto Case Study

I. Overview

Ford Motor Company decided to battle the foreign car competition because of the growing threat of Japanese cars. Lee Iacocca wanted to build a car named Pinto, and wanted it in the show room in about 2 years even though the time span for these kinds of cars is usually about 3 ½ to 4 years. Iacocca had a goal “the limits of 2000” which meant it couldn’t cost or weigh more than 2000 which later lead to issues with the car.

II. Problems / Opportunities

One of the major issues this organization is facing is the Ford Pinto’s gas tanks are exploding and they do not want to pay the money to fix it. Another major issue is Ford is competing against Japanese cars and needs as much truck space as possible to keep them in line with the Japanese cars to rise above them in the market.

III. Stakeholders & Facts

Exploding Gas Tanks and No Money

* Customers and Employees that are working for Ford are the primary stakeholders in Ford Pinto’s gas tanks exploding and no money to fix it. The employees are the ones that are making the Pinto’s with faulty gas tanks and the customers are the ones driving the cars and not knowing about the danger they are being put in.

* The fuel tanks in Ford Pinto’s would erupt in rear-end collisions going as slow as miles per hour.

* The redesigning of the car would be too much money.

* Changing the fuel tank was $11 a car which would cost the company $137.5 million.

* Cost of a life in a car accident is $200,725 which would be $36.1 million in lives lost.

* Ford was sued $6 million due to “callous indifference to human life.”

* Ford doesn’t care about the human life because they were aware of the faulty fuel tank design,

* Ford’s moto is basically “money over safety” when they said “safety doesn’t sell.”

Competition and Reputation

* Employees and the owner of Ford are the primary stakeholders in Ford Pinto’s competition against Japanese cars and the reputations they...