Pinto Case Study Example | Topics and Well Written Essays - 750 words - 1

Pinto - Case Study Example It seemed that it was more of a rush project, and the company had not dedicated enough time to its design as was necessary. The styling factor took precedence over all other engineering concerns, so much so that the company decided to position the gas tank behind the real axle. This was considered to be riskier and more prone to damage and fire during collisions. The model went for crash-testing and at that time the test revealed that if the collisions were made at a speed of more than 20 miles, the tank would leak and result in the gas leaking into the car where the passengers were sitting (Trevino and Nelson). Contrary to what the results suggested, the company’s management made the decision of continuing with the production of Pinto (Trevino and Nelson). This was based on several considerations. Firstly, the equipment in Ford’s assembly line was already functional and geared towards the making of this car; thus, by not producing it the company would bear significant loss. Secondly, the design complied with the basic minimum that the government and legal standards required. The requirement at that time was that the tank needs to be in place only if the collision is at a speed of less than 20 miles per hour (Birsch & Fielder). Thus, at any speed over 20 miles per hour, the government did not requirement the tank to be intact. Third, the company’s management was of the view that the car’s design matched with the design of comparable cars produced by other manufacturers. The final reason pertains to the Utilitarian line of reasoning. The company had conducted a cost-benefit analysis whereby it discovered that the cost of altering the gas tank would amount to $137 million whereas the benefit was only $49.15 million (Trevino and Nelson). This cost benefit analysis has come under scrutiny in various literatures. Firstly, it was rather erroneously assumed that the number of