pinto case study

8/3/2019 Pinto Case Study

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~ Pinto Case Study ~

Team E

PowerPoint PresentationPamela Hughes

Cathleen Miller

Jesseca Hernandez

Was Ford to Blame?



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 ~



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



~ 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



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



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."



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.



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



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



Cost/Benefit Analysis Cont’d

Costs $137.5 Million

Benefits - $49.5Million

Difference $ 88.0 Million



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



Any Questions?

pinto case study

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