The Ford Pinto Case

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Utilitarian Evaluation of the `Ford Pinto Case

The purpose of this is to present justifiable arguments supporting Ford 's decision to produce the Ford Pinto model . A utilitarian approach will be used to evaluate the case - the cost-benefit analysis is assumed to be of secondary value to the overall utilitarian analysis

Summary of the Case

In May 1968 , the Ford Motor Company , based upon a recommendation by then vice-president Lee Iacocca , decided to produce the Ford Pinto model . The purpose of the

choice was clear . The company wanted to gain a large market share in the automobile industry . The first few years were good for the company . Sales were good , and the Pinto model seemed perfect . However , in May 1972 , the first accident involving the new model occurred . The Ford Company lost the legal battle . Another case struck the company . The company defended itself on the grounds that it used the accepted risk /benefit analysis to determine if the private cost (to the company ) was greater than the societal benefit . Based on a fairly accurate estimate , the cost would have been 137 million against 49 .5 million price tag on the possible deaths , injuries , and car damages . The risk /benefit analysis was made out of the development of product liability , where if the expected harm exceeded the cost to take the precaution , the company must take the precaution

Utilitarian Approach

Based from the case , the Ford Company chose to produce the Pinto model because...