Pinto Ford Case Study

Pinto Ford Case Study

TEAM A

MGT/216

June 6, 2010

Pinto Ford Case Study

The 1960s Ford Pinto Case is historic and a perfect example of what not to do when product threatens lives of consumers. Lee Iacocca Chief Executive Officer (CEO) had a great idea, but he fail short by placing profits over people. Ford was successful and powerful but could not escape the pressures of the public it served. The 60s allowed corporation to exist without much scrutiny for mistake but the 70s brought with it a public that held large corporation like Ford accountable. Today period eye tells of Ford deciding to ignore its own research, and also deciding to blame drivers for their penny pinching ways. Moreover, Ford was so emphatic about their decision that it had the recall of the Pinto delayed for eight years. Ford initial decision concerning the Ford Pinto was definitely wrong. How would this case stand under today’s recommended solution, external pressures and a period eye?

Recommended Solution

The Ford Pinto Case in the late 1960s caused major concerns about the safety and functions of the fuel tank. According to De George (2006), Lee Iacocca, who was the C EO of the Ford Motor Company at that time, wanted to make a new automobile that would be acceptable to market against the competition of the other automobiles that were already on the market and doing well. Lee Iacocca’s main concern was to make an automobile that would top the others in ways of making it cost a lower price for consumers to buy and a less amount of time to make the automobile.

The Ford Pinto was fashioned, but when tested by the standard safety regulations at that time, the car failed the test. Instead of going back to redesign the car to meet state regulations, the company decided not to add the baffle to the tank because it would be costly to do so. If I were involved in this dilemma, the first thing I would have done was going back and re-evaluate the errors that caused...