Pinto Case Study

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~ Pinto Case Study ~

Team E

PowerPoint PresentationPamela Hughes

Cathleen Miller

Jesseca Hernandez

Was Ford to Blame?

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How Safe is Safe?

* ’73 Pinto 

* Rear-Ended

* High-Speed by Van

* Possibly Impaired Driver

* Burst into flames

* No Chance to Escape

~ Death of 3 Girls 08-10-1978 ~

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Pinto Rushed Into Production

* Without Adequate Testing

* Vulnerable Fuel System* Would Rupture with any Rear-End Collision

* Successful Lobbying

* Requirements of Safer Gas Tanks

What about testing?

Mass Production

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~ Sandra Gillespie & Robbie Carlton ~

A Tragic Casualty

Vehicle Stalled

* Rear Ended at 28mph

* Gas Tank Ruptured

* Car Exploded

* Sandra Died at Hospital Emergency* Robbie Lives, Burned & Emotionally Scarred

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Why Did Pinto Catch Fire So Easily?

Behind Rear Axle* Over-the-Axle Tank * Closer to Passengers in Back Seat

* Fighting Strong Competition with Volkswagen Rushed pinto into production in much less time Ford officials decided to manufacture the car even

though the defect was found

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23 months to roll-out (not 45)

PRODUCT OBJECTIVES:1. TRUE SUBCOMPACT :

Size & Weight2. LOW COST OF OWNERSHIP

Initial price, Fuel consumption, ReliabilityServiceability3. CLEAR PRODUCT SUPERIORITY

Appearance, Comfort, Features,Ride and Handling, Performance 

Lee Iacocca was fond of saying, "Safety doesn't sell."

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Successful Lobbying

Prevented the company to change gas tank 

* 500 burn deaths* Waited 8 yrs to make alterations to the gas tank 

* Waited so long because the internal cost benefitanalysis want profitable to make changes

sooner. 

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What was life worth in 1971?The Ford Cost-Benefit Analysis

Component 1971 Costs

Future Productivity Losses

Direct $132,000

Indirect $41,300 Medical Costs

Hospital $700

Other $ 425

Total $1,125

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Cost/Benefit Analysis:Recall?

Benefit Analysis Savings:

180 burn deaths, 180

serious burn injuries,2100 burned vehicles

Unit Cost $200,000 per death,

$67,000 per injury,$700 per vehicle

Total Benefit (180 X $200,000) +

(180 X $67,000) +(2,100 X $700) =$49.5 million

Cost Analysis Sales

11 million cars, 1.5

million light trucks Unit Cost

$11 per car, $11 pertruck 

Total Cost 12.5 million X $11

= $137.5 million

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Cost/Benefit Analysis Cont’d 

Costs $137.5 Million

Benefits - $49.5Million

Difference $ 88.0 Million

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Pinto recall

Ford was first urged to recall the Pinto in 1974,by the nonprofit Center for Auto Safety.

Late in 1978, Ford recalled all 1971-1976 Pinto

models (1.5 million cars) Modifications

Longer fuel filler neck 

Plastic shields

Protected from rear differential

Protected from rear shock absorber

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Any Questions?