One of the biggest roles is the board of directors or executive level management. Lee Iacocca the creator of the Ford Mustang had a very high reputation in which he outperformed his workers and his rival the President Semon “Bunky” Knudsen. The story of 1968 in which the German and the Japanese outperformed any other nation in making small compact cars. Lee Iacocca suggested to build a small compact car in which would outperform and be the competitor of the Germans’ compact car and the Japanese’s compact car.
With that being a debatable issue between Lee Iacocca and Semon Bunky Knudsen Ford’s CEO Henry Ford II decided it would be a great idea to compete with the Japanese and Germans making Lee Iacocca the new President of Ford Motor Company. As the new President the role of Lee Iacocca was very great in which he had to make a decision in how would the company become a success in a new market in which they never been before. As a successful company in making medium and large vehicles Ford was going into a new steeping stone on making compact cars.
The creation of the Pinto helped Ford have a small compact car in which was a competitor for both the Germans and Japanese bringing in a new American vehicle to the American Market. Among the introduction to that there came in challenges and ethical issues in which the company had to face during this era of the Pinto. Analyze and Evaluate Alternatives The main problem of the Pinto fires was the fault on the fuel tank in which they had. It was a very dangerous problem; due that it was lacking safety and it carried danger for the consumers.
There could have been various alternatives in which they could of stop this problem from going out in the market and there could have been fewer amounts of deaths. One of the Alternatives in which Ford could have taken into consideration was to make the design and do the production in the right amount of time. Lee Iacocca knew that there would be problems if the car was going to be produced in the shortest production period in automotive history in that time. Instead of making it in the amount it needed that was more than three and a half years, they made it in two years.
That being said there could have been many fixes in the issues of the car instead of putting it out in the market. The second alternative that could have been used was the Federal Motor Vehicle Safety Standard 301, could have been have been established much earlier. It was proposed in 1968 by the National Highway Traffic Safety Administration (NHTSA), but it was not adopted until 1977. Since that standard was not issued until that later time, the Pinto was to the required standards.
If that standard would have been in play when they made that car, then there would have never been as many deaths. Third Alternative was to fix that issue of the fuel tank. It only cost $11 more to have a safety feature to the pinto in which there would be a fixed fuel tank. That being the fact even if it was $11 it would have been a better feature in which would have saved lives instead of taking them away. The problem of these alternatives is that Ford had it all figured out and they went in what they though was going to make more profit versus the safety of someone’s life.
The National Highway Traffic Safety Administration (NHTSA) had a break down chart on how much is the cost of society when someone got killed in a traffic accident. The evaluation in which Ford used it for profit values, they knew that the cost will be about $200,725 in the death of a person. Their projection was 180 deaths and 180 serious injuries plus 2,100 burned cars. The death of a person was $200,725 x 180, injury $67,000 x 180, $700 x 2,100 in which brings a grand total of $49. 5 million. If they had to add $11 on the 11 million cars and 1. 5 million trucks the grand total would have been of $137.
5 million. With those statistics into play Ford decided to not put the safety feature on the vehicle and let it be. Decide on most valid alternative and make recommendations The most valid alternative was to put the $11 on the fuel tank of to the Pinto. Even though in the 70’s safety was not an issue the car projected in it would have saved hundreds or even thousands of lives. Due that studies showed the hundreds of thousands cars burned every year and it cost about 3,000 lives every year bringing the Motor Vehicle Safety Standard 301 into play in 1977.
Why the alternative of $11 dollars first of all to avoid that situation of the car burning down and taking people’s lives. Another reason is that even if it was to save money the Motor Vehicle Safety Standard 301 forced Ford to recall over a million of cars in which where not safe enough to drive. With that recall in play you would have to completely change that fuel tank and do tweaks and changes in order for the car to run properly, with that being the case the company will have to spend more money on doing these repairs on the vehicles.
Even if it is not moral on comparing the prices of lives versus the replacement of a part you have to take into play that these dangers will happen. For that one thing happens frequently it will be exposed to the public, in which the company will lose sales and there will be lawsuits for that problem. Getting into the situation and fixing it not only gives the company a good reputation, but good profits as well. References Pinto Madness. (2012). Retrieved from http://www. soc. iastate. edu/sapp/pinto. pdf