On September 11th, 1970, Ford launched the infamous Pinto, whose main claim to fame is arguably a fuel tank that could catch fire and explode in the event of a rear-end collision.
Rather than fixing the problem (cost: about $11 per car) and delay mass production, Ford went ahead and sold the Pinto as it was. Sadly, 27 people died as a direct result.
How could Ford executives come up with this decision? Well, they had estimated the value of a human life at $200,725 and, apparently, a recall would have been costlier than the deaths and injuries caused by the faulty tank.
The plan backfired. Facing various lawsuits, the automaker was forced to recall all vehicles at risk in addition to paying compensations of $125 million.
Ford's image was severely tarnished by the Pinto, nicknamed “the Barbecue that seats four.” Still, in ten years of existence, more than two million units were sold.
Rather than fixing the problem (cost: about $11 per car) and delay mass production, Ford went ahead and sold the Pinto as it was. Sadly, 27 people died as a direct result.
How could Ford executives come up with this decision? Well, they had estimated the value of a human life at $200,725 and, apparently, a recall would have been costlier than the deaths and injuries caused by the faulty tank.
The plan backfired. Facing various lawsuits, the automaker was forced to recall all vehicles at risk in addition to paying compensations of $125 million.
Ford's image was severely tarnished by the Pinto, nicknamed “the Barbecue that seats four.” Still, in ten years of existence, more than two million units were sold.
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| Photo: storm.oldcarmanualproject.com |
