Managing Product Safety - The Ford Pinto

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CASE: Managing Product Safety: The Ford Pinto


I. LEGAL CASE ANALYSIS

A. Facts

In 1960 Ford Motors produced the first American compact car, the Ford Falcon. In 1964 the Ford Mustang followed, gaining wide favor as a sports car “for the masses.” Ford executives believed that foreign imports posed a threat to its position in the small car market, and it did not have a sub-compact model to compete with the foreign models. In 1967, Lee Iacocca became president of Ford Motors and directed development of the Ford Pinto, which was released in 1970. The Pinto rapidly gained acceptance and after 6 years over 2 million units had been sold, a company best-seller.

The design and planning process for the Pinto was fast-tracked, with an ultimate development time of 38 months exceeding the average time of 43 months. The decision was made to install the gas tank as a strap-on unit under the rear floor pan and behind the rear axle. Late in the design process, however, an engineering study had determined that the safest place for a fuel tank was directly above the rear axle. However, such as design would require a circuitous filler pipe likely to be dislodged in an accident as well as raise the center of gravity thus affecting handling, causing an overall decrease in safety in the opinion of senior engineers. Additionally, such a location would interfere with future options such as a wagon or hatchback, as well as decrease storage space.

In 1969, the NHTSA proposed its first rear-end collision fuel system integrity standard, Standard 301, which required less than one ounce of fuel leak per minute after a 20 mph rear-end collision with a moving barrier of 4000 pounds. Ford tested prototype models of the Pinto under this standard, made modifications as necessary and began production of the Pinto. However, in 1970, the NHTSA proposed a 20 mph fixed barrier standard to be met by all vehicle within 18 months, as well as noting that a 30 ...