This document provides an analysis of the Ford-Firestone case where hundreds died due to rollovers of the Ford Explorer SUV. It discusses how Ford blamed the accidents on Firestone tires, while Firestone blamed the vehicle's design. The document analyzes how the tires were a component of the vehicle, and how Ford made decisions that compromised safety, such as selecting tires rated to withstand less heat and setting lower tire pressures despite tests showing stability issues. The document concludes Ford can be held morally responsible as the manufacturer that controlled the vehicle production process.
Ford and Firestone both knew the Explorer SUV and Wilderness AT/ATX tires were prone to catastrophic failure due to tread separation, resulting in rollovers and hundreds of deaths. However, they prioritized profits over safety by ignoring warnings, lying to the public, and cutting production corners. Whistleblowers from both companies tried alerting management and regulators to no avail for years. It was not until massive public pressure that regulators launched a full investigation, ultimately forcing a recall of the defective tires. Stricter whistleblower protections and ethical oversight are needed to prevent future safety disasters rooted in corporate negligence.
The document summarizes the quality failures of the Ford Pinto automobile in the 1970s. It describes how Ford rushed the Pinto's development and production in 25 months to compete with foreign compact cars. This hasty process led to dangerous design flaws where the gas tank was vulnerable to rupturing in rear-end collisions, sometimes causing fires and deaths. The document also discusses Ford's controversial cost-benefit analysis that showed improving the gas tank design would save lives but cost more money, so they opted not to fix the known safety issue. Overall it examines how Ford's rushed timeline and focus on costs over safety had deadly consequences and damaged their quality reputation.
Ford Motors is a leading automobile company that was severely impacted by the 2008 recession but has since made a strong recovery. An analysis of Ford and the automobile industry highlights several key points. The industry has faced overcapacity challenges as production outpaced demand. Ford has implemented a "One Ford" strategy focused on restructuring, new product development, and improving its financial position. Looking forward, Ford's strategy should continue expanding into foreign markets through strategic alliances while addressing ongoing industry problems like excess capacity and high new product development costs.
This document summarizes the ethical issues surrounding the Ford-Firestone tire recall of 2000. It discusses five design flaws with the Ford Explorer that contributed to safety issues: 1) Using the Twin Traction I-Beam suspension prone to rollovers, 2) Failing to lower the vehicle's center of gravity when redesigning the suspension, 3) Not selecting more suitable tires, 4) Decreasing tire pressure to improve stability which subjected tires to conditions outside their rating, and 5) Lightening tires at Ford's request which removed key materials. Ford knew of safety problems for years but denied vehicle flaws, violating ethical obligations to stakeholders. Firestone also shares blame for tire flaws. Both companies failed to uphold their ethical responsibilities
The presentation explains the Volkswagen Emission scandal of 2015 in detail.
It also gives us the details of the after effects and the steps taken by Volkswagen to overturn the huge loss
Ford Motor Company is an American automaker headquartered in Dearborn, Michigan. It was founded in 1903 by Henry Ford and is a major competitor to General Motors and Chrysler. Ford struggled in the late 20th century due to failed restructuring plans under CEOs Alex Trotman and Jacques Nasser. When Bill Ford asked Nasser to resign, he was unable to turn the company around and Ford's market share fell to a historic low of 18%. In 2006, Alan Mulally was hired as CEO and successfully led a turnaround, returning Ford to profitability.
The document summarizes a scenario where the author is the recall coordinator for Ford Motor Company in 1973. Reports are coming in of rear-end collisions involving Pintos resulting in fires and fatalities. The author must decide whether to recall the Pinto. The Pinto was rushed to market with known safety issues to compete with foreign compact cars. Ford prioritized costs over safety. The author considers their obligations to Ford, consumers, and the public, and determines a recall is necessary to prevent further loss of life despite potential professional consequences.
Ford and Firestone both knew the Explorer SUV and Wilderness AT/ATX tires were prone to catastrophic failure due to tread separation, resulting in rollovers and hundreds of deaths. However, they prioritized profits over safety by ignoring warnings, lying to the public, and cutting production corners. Whistleblowers from both companies tried alerting management and regulators to no avail for years. It was not until massive public pressure that regulators launched a full investigation, ultimately forcing a recall of the defective tires. Stricter whistleblower protections and ethical oversight are needed to prevent future safety disasters rooted in corporate negligence.
The document summarizes the quality failures of the Ford Pinto automobile in the 1970s. It describes how Ford rushed the Pinto's development and production in 25 months to compete with foreign compact cars. This hasty process led to dangerous design flaws where the gas tank was vulnerable to rupturing in rear-end collisions, sometimes causing fires and deaths. The document also discusses Ford's controversial cost-benefit analysis that showed improving the gas tank design would save lives but cost more money, so they opted not to fix the known safety issue. Overall it examines how Ford's rushed timeline and focus on costs over safety had deadly consequences and damaged their quality reputation.
Ford Motors is a leading automobile company that was severely impacted by the 2008 recession but has since made a strong recovery. An analysis of Ford and the automobile industry highlights several key points. The industry has faced overcapacity challenges as production outpaced demand. Ford has implemented a "One Ford" strategy focused on restructuring, new product development, and improving its financial position. Looking forward, Ford's strategy should continue expanding into foreign markets through strategic alliances while addressing ongoing industry problems like excess capacity and high new product development costs.
This document summarizes the ethical issues surrounding the Ford-Firestone tire recall of 2000. It discusses five design flaws with the Ford Explorer that contributed to safety issues: 1) Using the Twin Traction I-Beam suspension prone to rollovers, 2) Failing to lower the vehicle's center of gravity when redesigning the suspension, 3) Not selecting more suitable tires, 4) Decreasing tire pressure to improve stability which subjected tires to conditions outside their rating, and 5) Lightening tires at Ford's request which removed key materials. Ford knew of safety problems for years but denied vehicle flaws, violating ethical obligations to stakeholders. Firestone also shares blame for tire flaws. Both companies failed to uphold their ethical responsibilities
The presentation explains the Volkswagen Emission scandal of 2015 in detail.
It also gives us the details of the after effects and the steps taken by Volkswagen to overturn the huge loss
Ford Motor Company is an American automaker headquartered in Dearborn, Michigan. It was founded in 1903 by Henry Ford and is a major competitor to General Motors and Chrysler. Ford struggled in the late 20th century due to failed restructuring plans under CEOs Alex Trotman and Jacques Nasser. When Bill Ford asked Nasser to resign, he was unable to turn the company around and Ford's market share fell to a historic low of 18%. In 2006, Alan Mulally was hired as CEO and successfully led a turnaround, returning Ford to profitability.
The document summarizes a scenario where the author is the recall coordinator for Ford Motor Company in 1973. Reports are coming in of rear-end collisions involving Pintos resulting in fires and fatalities. The author must decide whether to recall the Pinto. The Pinto was rushed to market with known safety issues to compete with foreign compact cars. Ford prioritized costs over safety. The author considers their obligations to Ford, consumers, and the public, and determines a recall is necessary to prevent further loss of life despite potential professional consequences.
Ford Motors was once the second largest automobile manufacturer in the US, but it faced declining market share, high debt, and failed products in the late 1990s. New CEO Alan Mulally devised strategies to cut costs, pay down debt, refocus products, and improve communications. These efforts helped Ford pay off some debts and earn a profit again by 2010. However, it still faces competition from Toyota, General Motors, and other automakers.
Rita Shor and her team at 3M's Health Care Unit were tasked with developing new products using an innovative market research method called "Lead User Research" after the unit failed to introduce a successful product in a decade. After months of research, the team developed four recommendations - three for new product lines and a fourth that proposed rewriting the unit's business strategy. Given the degree of change the fourth recommendation would bring and decreasing support for the research method, Rita must carefully consider how to introduce the recommendations to management, initially suggesting the new product lines while further developing the potential strategic change.
Rolls-Royce is a British luxury car and aerospace manufacturer established in 1904 in Manchester, UK. It employs different strategies like cost leadership, differentiation, and focus. It has 22,000 employees across aerospace, defense, marine and energy divisions. In 2019, Rolls-Royce reported an operating loss of $1.11 billion due to issues with its Trent 1000 aircraft engine that powers Boeing 787 Dreamliners. It has been working to resolve durability problems with the engine blades.
A.T. Kearney is a global management consulting firm with over 3,500 employees in more than 60 offices across over 40 countries. Since 1926, it has provided strategic advice to major organizations. It aims to deliver immediate impact and long-term advantage for its clients through expertise in various industries and services. A.T. Kearney also focuses on its people and culture, emphasizing values like collaboration, authenticity, and lifelong learning.
Ford Motor Company is an American automaker headquartered in Michigan. It produces and distributes vehicles worldwide under the Ford and Lincoln brands. In 2012, Ford reported $136.3 billion in revenue and delivered strong profits for the 14th consecutive quarter. Ford uses strategies like product diversification and vertical integration to compete in global automobile markets against major competitors like Toyota and GM. The company also focuses on corporate social responsibility and sustainability through initiatives to reduce emissions and support human rights.
Full strategic case analysis for Apple incorporation including industry , competitor's and firm's self analysis. It covers all the strategic issues facing the industry and Apple inc. as well as the recommended solutions for these issues on business and corporate levels.
The study shows the development on the Apple Inc. mission& vision and the strategic objectives over time.
Firestone was once a pioneer and leader in the tire industry but made several strategic mistakes that led to its decline. It failed to adequately prepare for the introduction of radial tires to the US market in the 1970s despite seeing them come to Europe a decade prior. Firestone's response was inefficient, as it kept old factories open and production processes did not meet quality standards for radial tires. This caused huge financial losses. Further, several recalls due to faulty radial tires in the 1970s-1980s damaged Firestone's reputation and market share. Bridgestone eventually acquired Firestone in 1988 after it lost control of the American tire market to foreign competitors.
Ford Motor Company is a global automaker headquartered in Dearborn, Michigan. It manufactures and distributes vehicles worldwide and includes the Lincoln and Mazda brands. While once the largest US automaker, Ford is now the second largest and focuses on developing new electric vehicles and fuel efficient models to compete with Toyota and General Motors. A key goal is improving its balance sheet and working as one global team to deliver profitable growth.
The Ford Fiesta Movement was a 6-month social media campaign using 100 influencers to promote the new Ford Fiesta to millennials. Agents created video content based on monthly missions which was approved by Ford and shared on their own social networks and a dedicated website. The campaign helped increase brand familiarity and test drives among young buyers in a cost-effective way through user-generated content before the Fiesta was available in US showrooms. It allowed Ford to connect with hard to reach millennials and shape perceptions of the new small car through an experimental grassroots approach.
Ford Motor Company is the second largest automaker in the US behind General Motors. This report analyzes Ford's organizational structure, strategic position using various matrices, and recommends a 3-year strategic plan for the new CEO. The analyses show strengths in Ford's global market share and manufacturing expansion, but weaknesses in declining profits in recent years. The recommendations aim to improve profitability through restructuring plans.
Merck is facing losing patents on some major drugs like Vasotac and Mevacor. Possible solutions are mergers or focusing on innovation. Merck's new product process was previously slow to respond to competitors, but it now develops cross-functional teams early in the process. Developing specialized patented drugs helps Merck capture new markets. However, drug development faces risks if products fail trials or competitors launch first. The pharmaceutical industry faces challenges like patent expirations and increasing drug resistance. Porter's five forces analysis shows barriers to entry are high in pharmaceuticals due to R&D costs and required scale, while buyers have significant bargaining power.
Ford pinto full details and analysis report with referencesSyed Kamran Haider
case study report on ford company who made a car named as pinto. the presentation tells the summary of design issue and the flaws in the car and ethical issues
The document provides an analysis of issues that caused delays in the delivery of Boeing's 787 Dreamliner airplane. It identifies several problems that contributed to the delays, including unexpected shortages of fasteners from suppliers that caused Boeing to rush suppliers, leading to quality control issues. Overall, the delays cost Boeing over $4 billion in penalties to airlines. The document analyzes the problems from a supply chain management perspective and suggests implementing changes to prevent such delays in the future, such as better supply chain coordination and quality control measures.
This document provides a SWOT analysis of Enron prior to its collapse in 2001. It identifies strengths such as Enron's human capital pool and competitive advantage in jet fuel sales after 9/11. Weaknesses included the failed board of directors, unethical practices, and a corporate culture that enabled fraud. Opportunities existed in growing clean energy markets and business expansion to Asia. Threats included increased competition, regulations, and the economic impacts of the subprime mortgage crisis. The analysis ultimately concludes that Enron's downfall was due to unethical internal practices rather than external forces.
Renault-Nissan Strategic Alliance, Case AnalysisRamin Navvabpour
-An analytical approach to define Key Success Factors of the Renault-Nissan Strategic Alliance.
-Strategies, Goals, and achievements of Renault-Nissan Strategic Alliance
-How to eliminate distances in Renault-Nissan Strategic Alliance (the CAGE model)
Strategic Management: Walt Disney Case StudyCallie Unruh
The document is an organizational case study of The Walt Disney Company. It provides an overview of Disney's mission, internal assessment including finances and organizational structure, external assessment of competitors and market position, SWOT analysis, and strategies. The key points are:
- Disney's mission is to be a leading producer and provider of entertainment and information globally.
- Internally it has a diversified structure with business units in media networks, studio entertainment, parks and resorts, and consumer products.
- Externally it competes with other large media companies and assesses opportunities in technology changes, new markets, and threats like economic shifts.
- Strategies discussed include pursuing growth through diversification, increasing market
Jollibee Food Corporation-An International Expansion Case StudyKartik Mehta
The document discusses Jollibee's international expansion strategies. It started as an ice cream parlor in the Philippines and became the largest fast food chain in the country. In the 1990s, it began expanding internationally but faced challenges implementing Tony Kitchner's strategy of rapid expansion without proper research. By 1997, a new general manager, Noli Tingzon, was considering three options for growth: entering Papua New Guinea by partnering with a franchisee, opening a fourth store in Hong Kong, or supporting existing stores in California to expand to other markets in the US. The recommendation was to pursue the Papua New Guinea opportunity to gain a first-mover advantage with minimal risk.
Organizational Behavior Chapter 7 Motivation - From Concepts to ApplicationDr. John V. Padua
The document discusses various ways to motivate employees through job design and rewards. It describes the job characteristics model which proposes that motivating jobs are autonomous, provide feedback, and have at least one meaningfulness factor. Jobs can be redesigned through methods like job rotation, job enrichment, and alternative work arrangements. Employee involvement measures like participative management and representative participation can also increase motivation. Reward programs include variable pay, flexible benefits, and employee recognition programs which provide intrinsic rewards.
Vission, Mission, Goals, Objective, Core Competencies, PESTEL Analysis, Swot Analysis, Importance of StakeHolders Analysis, of the company Rolls Royce. all done first hand.
need to find something like this but couldn't so publish it for everyone.
Ford introduced the Pinto in the 1970s but knew it failed to meet upcoming safety standards for rear-end collisions. Engineers found the gas tank was vulnerable to puncture in crashes over 20 mph, but Ford prioritized costs and deadlines over safety. They conducted a cost-benefit analysis that calculated the financial costs of loss of life and lawsuits were lower than the costs of fixing the gas tank design. This decision led to many deaths and injuries from Pinto fires and raised ethical issues around valuing human life based on financial costs alone.
2004 Chicago Auto Show
Chicago. – February 4, 2004 eMOTION! REPORTS.com, an automotive/aerospace industries research and analysis site (www.emotionreports.com) that targets professionals within the academic, media, corporate and government sectors, announced the second phase of its annual vehicle awards program which now includes aerospace. Categories include Car of The Year, SUV of The Year, Technological Achievement of the Year and special awards in both categories.
"In September, we named Cadillac CTS/CTS-V as Car of The Year 2003/04; Lincoln Aviator as SUV of The Year 2003, Toyota Prius as Technological Achievement of 2003/04, Bombardier’s Global Express as Business Jet of The Decade and Boeing’s superlative Globemaster III as Airlifter of The Decade," said Publisher Myron D. Stokes, an award-winning journalist/analyst formerly with Newsweek, Newsweek International and Newsweek Japan.
"We are pleased to announce at the Chicago Auto Show, recognized internationally as one of the premier automotive industry events, that Ford’s 2004 F-150 is named Truck of The Decade and Ford GT as Performance Car of 2005. The first question that will no doubt come to mind is why, in a veritable sea of great competition,
Ford Motors was once the second largest automobile manufacturer in the US, but it faced declining market share, high debt, and failed products in the late 1990s. New CEO Alan Mulally devised strategies to cut costs, pay down debt, refocus products, and improve communications. These efforts helped Ford pay off some debts and earn a profit again by 2010. However, it still faces competition from Toyota, General Motors, and other automakers.
Rita Shor and her team at 3M's Health Care Unit were tasked with developing new products using an innovative market research method called "Lead User Research" after the unit failed to introduce a successful product in a decade. After months of research, the team developed four recommendations - three for new product lines and a fourth that proposed rewriting the unit's business strategy. Given the degree of change the fourth recommendation would bring and decreasing support for the research method, Rita must carefully consider how to introduce the recommendations to management, initially suggesting the new product lines while further developing the potential strategic change.
Rolls-Royce is a British luxury car and aerospace manufacturer established in 1904 in Manchester, UK. It employs different strategies like cost leadership, differentiation, and focus. It has 22,000 employees across aerospace, defense, marine and energy divisions. In 2019, Rolls-Royce reported an operating loss of $1.11 billion due to issues with its Trent 1000 aircraft engine that powers Boeing 787 Dreamliners. It has been working to resolve durability problems with the engine blades.
A.T. Kearney is a global management consulting firm with over 3,500 employees in more than 60 offices across over 40 countries. Since 1926, it has provided strategic advice to major organizations. It aims to deliver immediate impact and long-term advantage for its clients through expertise in various industries and services. A.T. Kearney also focuses on its people and culture, emphasizing values like collaboration, authenticity, and lifelong learning.
Ford Motor Company is an American automaker headquartered in Michigan. It produces and distributes vehicles worldwide under the Ford and Lincoln brands. In 2012, Ford reported $136.3 billion in revenue and delivered strong profits for the 14th consecutive quarter. Ford uses strategies like product diversification and vertical integration to compete in global automobile markets against major competitors like Toyota and GM. The company also focuses on corporate social responsibility and sustainability through initiatives to reduce emissions and support human rights.
Full strategic case analysis for Apple incorporation including industry , competitor's and firm's self analysis. It covers all the strategic issues facing the industry and Apple inc. as well as the recommended solutions for these issues on business and corporate levels.
The study shows the development on the Apple Inc. mission& vision and the strategic objectives over time.
Firestone was once a pioneer and leader in the tire industry but made several strategic mistakes that led to its decline. It failed to adequately prepare for the introduction of radial tires to the US market in the 1970s despite seeing them come to Europe a decade prior. Firestone's response was inefficient, as it kept old factories open and production processes did not meet quality standards for radial tires. This caused huge financial losses. Further, several recalls due to faulty radial tires in the 1970s-1980s damaged Firestone's reputation and market share. Bridgestone eventually acquired Firestone in 1988 after it lost control of the American tire market to foreign competitors.
Ford Motor Company is a global automaker headquartered in Dearborn, Michigan. It manufactures and distributes vehicles worldwide and includes the Lincoln and Mazda brands. While once the largest US automaker, Ford is now the second largest and focuses on developing new electric vehicles and fuel efficient models to compete with Toyota and General Motors. A key goal is improving its balance sheet and working as one global team to deliver profitable growth.
The Ford Fiesta Movement was a 6-month social media campaign using 100 influencers to promote the new Ford Fiesta to millennials. Agents created video content based on monthly missions which was approved by Ford and shared on their own social networks and a dedicated website. The campaign helped increase brand familiarity and test drives among young buyers in a cost-effective way through user-generated content before the Fiesta was available in US showrooms. It allowed Ford to connect with hard to reach millennials and shape perceptions of the new small car through an experimental grassroots approach.
Ford Motor Company is the second largest automaker in the US behind General Motors. This report analyzes Ford's organizational structure, strategic position using various matrices, and recommends a 3-year strategic plan for the new CEO. The analyses show strengths in Ford's global market share and manufacturing expansion, but weaknesses in declining profits in recent years. The recommendations aim to improve profitability through restructuring plans.
Merck is facing losing patents on some major drugs like Vasotac and Mevacor. Possible solutions are mergers or focusing on innovation. Merck's new product process was previously slow to respond to competitors, but it now develops cross-functional teams early in the process. Developing specialized patented drugs helps Merck capture new markets. However, drug development faces risks if products fail trials or competitors launch first. The pharmaceutical industry faces challenges like patent expirations and increasing drug resistance. Porter's five forces analysis shows barriers to entry are high in pharmaceuticals due to R&D costs and required scale, while buyers have significant bargaining power.
Ford pinto full details and analysis report with referencesSyed Kamran Haider
case study report on ford company who made a car named as pinto. the presentation tells the summary of design issue and the flaws in the car and ethical issues
The document provides an analysis of issues that caused delays in the delivery of Boeing's 787 Dreamliner airplane. It identifies several problems that contributed to the delays, including unexpected shortages of fasteners from suppliers that caused Boeing to rush suppliers, leading to quality control issues. Overall, the delays cost Boeing over $4 billion in penalties to airlines. The document analyzes the problems from a supply chain management perspective and suggests implementing changes to prevent such delays in the future, such as better supply chain coordination and quality control measures.
This document provides a SWOT analysis of Enron prior to its collapse in 2001. It identifies strengths such as Enron's human capital pool and competitive advantage in jet fuel sales after 9/11. Weaknesses included the failed board of directors, unethical practices, and a corporate culture that enabled fraud. Opportunities existed in growing clean energy markets and business expansion to Asia. Threats included increased competition, regulations, and the economic impacts of the subprime mortgage crisis. The analysis ultimately concludes that Enron's downfall was due to unethical internal practices rather than external forces.
Renault-Nissan Strategic Alliance, Case AnalysisRamin Navvabpour
-An analytical approach to define Key Success Factors of the Renault-Nissan Strategic Alliance.
-Strategies, Goals, and achievements of Renault-Nissan Strategic Alliance
-How to eliminate distances in Renault-Nissan Strategic Alliance (the CAGE model)
Strategic Management: Walt Disney Case StudyCallie Unruh
The document is an organizational case study of The Walt Disney Company. It provides an overview of Disney's mission, internal assessment including finances and organizational structure, external assessment of competitors and market position, SWOT analysis, and strategies. The key points are:
- Disney's mission is to be a leading producer and provider of entertainment and information globally.
- Internally it has a diversified structure with business units in media networks, studio entertainment, parks and resorts, and consumer products.
- Externally it competes with other large media companies and assesses opportunities in technology changes, new markets, and threats like economic shifts.
- Strategies discussed include pursuing growth through diversification, increasing market
Jollibee Food Corporation-An International Expansion Case StudyKartik Mehta
The document discusses Jollibee's international expansion strategies. It started as an ice cream parlor in the Philippines and became the largest fast food chain in the country. In the 1990s, it began expanding internationally but faced challenges implementing Tony Kitchner's strategy of rapid expansion without proper research. By 1997, a new general manager, Noli Tingzon, was considering three options for growth: entering Papua New Guinea by partnering with a franchisee, opening a fourth store in Hong Kong, or supporting existing stores in California to expand to other markets in the US. The recommendation was to pursue the Papua New Guinea opportunity to gain a first-mover advantage with minimal risk.
Organizational Behavior Chapter 7 Motivation - From Concepts to ApplicationDr. John V. Padua
The document discusses various ways to motivate employees through job design and rewards. It describes the job characteristics model which proposes that motivating jobs are autonomous, provide feedback, and have at least one meaningfulness factor. Jobs can be redesigned through methods like job rotation, job enrichment, and alternative work arrangements. Employee involvement measures like participative management and representative participation can also increase motivation. Reward programs include variable pay, flexible benefits, and employee recognition programs which provide intrinsic rewards.
Vission, Mission, Goals, Objective, Core Competencies, PESTEL Analysis, Swot Analysis, Importance of StakeHolders Analysis, of the company Rolls Royce. all done first hand.
need to find something like this but couldn't so publish it for everyone.
Ford introduced the Pinto in the 1970s but knew it failed to meet upcoming safety standards for rear-end collisions. Engineers found the gas tank was vulnerable to puncture in crashes over 20 mph, but Ford prioritized costs and deadlines over safety. They conducted a cost-benefit analysis that calculated the financial costs of loss of life and lawsuits were lower than the costs of fixing the gas tank design. This decision led to many deaths and injuries from Pinto fires and raised ethical issues around valuing human life based on financial costs alone.
2004 Chicago Auto Show
Chicago. – February 4, 2004 eMOTION! REPORTS.com, an automotive/aerospace industries research and analysis site (www.emotionreports.com) that targets professionals within the academic, media, corporate and government sectors, announced the second phase of its annual vehicle awards program which now includes aerospace. Categories include Car of The Year, SUV of The Year, Technological Achievement of the Year and special awards in both categories.
"In September, we named Cadillac CTS/CTS-V as Car of The Year 2003/04; Lincoln Aviator as SUV of The Year 2003, Toyota Prius as Technological Achievement of 2003/04, Bombardier’s Global Express as Business Jet of The Decade and Boeing’s superlative Globemaster III as Airlifter of The Decade," said Publisher Myron D. Stokes, an award-winning journalist/analyst formerly with Newsweek, Newsweek International and Newsweek Japan.
"We are pleased to announce at the Chicago Auto Show, recognized internationally as one of the premier automotive industry events, that Ford’s 2004 F-150 is named Truck of The Decade and Ford GT as Performance Car of 2005. The first question that will no doubt come to mind is why, in a veritable sea of great competition,
The document summarizes the timeline of events in the Ford-Firestone debacle where defective Firestone tires caused numerous accidents and deaths. It began in the late 1970s with Firestone tire recalls and continued through the 1990s as Ford Explorers were equipped with Firestone tires that experienced tread separation, resulting in lost vehicle control. Issues came to a head in 2000 when over 6 million tires were recalled in the US and it was discovered that both Ford and Firestone were aware of issues but failed to address them properly. The recalls cost both companies over $2 billion and resulted in over 200 deaths.
The document summarizes the Ford/Firestone tire case from the late 1990s and early 2000s. Bridgestone acquired Firestone in 1988 after a major 1978 tire recall. In the 1990s, Ford Explorers were equipped with defective Firestone tires that experienced tread separation, especially at high speeds and in warm climates. This caused numerous crashes and deaths. An investigation found design flaws in the Firestone tires like a narrow belt wedge. It was determined the tires were defective but Ford and Firestone failed to address the issue in a timely manner, costing many lives.
Ford Motor Company is an American automaker headquartered in Dearborn, Michigan. It was founded in 1903 by Henry Ford and sells vehicles worldwide under the Ford and Lincoln brands. The report provides an overview of Ford's vision, management, organization structure, and SWOT analysis. It also summarizes Ford's presence in India since 1995 and its investments in manufacturing facilities.
Ford and GM A Comparison of 2 Fortune 500 CompaniesLeo de Sousa
This document compares Ford Motor Company and General Motors Corporation. It summarizes that through strategic decisions, Ford was able to survive the 2008 economic crisis without government assistance, while GM had to file for bankruptcy and be bailed out by the US and Canadian governments. The document then provides an abstract and introduction to each company, followed by chapters discussing their strategic planning, organizational structure, finances, social responsibility, and innovation approaches. It analyzes why Ford was successful in navigating the crisis while GM was not based on differences in these areas.
AN OVERVIEW ON THE COOPER TIRE & RUBBER COMPANYVARUN KESAVAN
Cooper Tire & Rubber Company is an American company founded in 1914 that specializes in tire design, manufacturing, and sales. It owns several tire brands including Cooper, Avon, Dean, Mastercraft, Mickey Thompson, Roadmaster, and Starfire. Cooper has grown significantly over the years through acquisitions and now operates manufacturing facilities worldwide, with a focus on the Chinese market which generates 25% of its global sales. The company has a history of involvement in motorsports through various sponsorships and tire supply contracts.
AN OVERVIEW ON THE GOODYEAR TIRE AND RUBBER COMPANYVARUN KESAVAN
The Goodyear Tire & Rubber Company is an American multinational tire manufacturing company founded in 1898 by Frank Seiberling and based in Akron, Ohio. Goodyear manufactures tires for automobiles, commercial trucks, light trucks, motorcycles, SUVs, race cars, airplanes, farm equipment and heavy earth-mover machinery. It also produced bicycle tires from its founding until 1976.[2]
The company was named after American Charles Goodyear, inventor of vulcanized rubber. The first Goodyear tires became popular because they were easily detachable and required little maintenance.
Goodyear is also known for the Goodyear Blimp. Though Goodyear had been manufacturing airships and balloons since the early 1900s, the first Goodyear advertising blimp flew in 1925. Today it is one of the most recognizable advertising icons in America.[3] The company is the most successful tire supplier in Formula One history, with more starts, wins, and constructors' championships than any other tire supplier.[4] They pulled out of the sport after the 1998 season. It is the sole tire supplier for NASCAR series.
Goodyear is a former component of the Dow Jones Industrial Average.[5] The company opened a new global headquarters building in Akron in 2013.
This document provides details about the Ford Pinto case study, including:
1. The Ford Pinto was designed and manufactured on an accelerated schedule to meet cost and time constraints, which compromised safety testing and design features.
2. Low-speed rear-end crash testing revealed the fuel tank was vulnerable to puncture due to its location behind the rear axle and proximity to protruding bolts, but Ford failed to implement recommended safety modifications.
3. Two catastrophic failures occurred when Pintos were rear-ended and their fuel tanks ruptured, resulting in fires that killed the drivers. Ford was aware of the design flaw from internal testing but conducted a cost-benefit analysis that determined not fixing it would
Ford produced the Pinto hatchback in the 1970s. Issues were raised regarding the safety of the Pinto's design and placement of the gas tank. Ford was aware of the safety issues from crash tests but conducted a cost-benefit analysis determining it was less expensive not to fix the issues. This led to lawsuits against Ford for dangerous design flaws that resulted in deaths and injuries from rear-impact collisions.
This document compares Ford and Honda, two large automobile manufacturers. It analyzes their sales, markets, manufacturing locations, stock shares, employees, revenues, and profit margins from 2005-2010. It then performs SWOT analyses for both companies, identifying strengths like brand value, engines, and product diversity for Honda, and weaknesses like shareholder losses and nationalistic image for Ford. The document concludes by suggesting potential strategies for each company.
For seven years the Ford Motor Company sold cars in which it k.docxAKHIL969626
For seven years the Ford Motor Company sold cars in which it knew hundreds of people would needlessly burn to death.
By Mark Dowie | September/October 1977 Issue
One evening in the mid-1960s, Arjay Miller was driving home from his office in Dearborn, Michigan [1], in the four-door Lincoln
Continental that went with his job as president of the Ford Motor Company [2]. On a crowded highway, another car struck his from the
rear. The Continental spun around and burst into flames. Because he was wearing a shoulder-strap seat belt, Miller was unharmed by the
crash, and because his doors didn't jam he escaped the gasoline-drenched, flaming wreck. But the accident made a vivid impression on
him. Several months later, on July 15, 1965, he recounted it to a U.S. Senate subcommittee that was hearing testimony on auto safety
legislation. "I still have burning in my mind the image of that gas tank on fire," Miller said. He went on to express an almost passionate
interest in controlling fuel-fed fires in cars that crash or roll over. He spoke with excitement about the fabric gas tank Ford was testing at
that very moment. "If it proves out," he promised the senators, it will be a feature you will see in our standard cars."
Almost seven years after Miller's testimony, a woman, whom for legal reasons we will call Sandra Gillespie, pulled onto a Minneapolis
highway in her new Ford Pinto. Riding with her was a young boy, whom we'll call Robbie Carlton. As she entered a merge lane, Sandra
Gillespie's car stalled. Another car rear-ended hers at an impact speed of 28 miles per hour. The Pinto's gas tank ruptured. Vapors from it
mixed quickly with the air in the passenger compartment. A spark ignited the mixture and the car exploded in a ball of fire. Sandra died
in agony a few hours later in an emergency hospital. Her passenger, 13-year-old Robbie Carlton, is still alive; he has just come home
from another futile operation aimed at grafting a new ear and nose from skin on the few unscarred portions of his badly burned body.
(This accident is real; the details are from police reports.)
Why did Sandra Gillespie's Ford Pinto catch fire so easily, seven years after Ford's Arjay Miller made his apparently sincere
pronouncements—the same seven years that brought more safety improvements to cars than any other period in automotive history? An
extensive investigation by Mother Jones over the past six months has found these answers:
Fighting strong competition from Volkswagen [3] for the lucrative small-car market, the Ford Motor Company rushed the Pinto
into production in much less than the usual time.
Ford engineers discovered in pre-production crash tests that rear-end collisions would rupture the Pinto's fuel system extremely
easily.
Because assembly-line machinery was already tooled when engineers found this defect, top Ford officials decided to manufacture
the car anyway—exploding gas tank and all—even though Ford owned the patent on a much s ...
1
8Week 3 Assignment 1
Nicole Lynn Sowards
Strayer University
BUS499 Business Administration Capstone
Dr. Joseph Keller
April 20, 2020
Week 3 Assignment 1
Ford is an American multinational automobile company founded by Henry Ford in 1903. Firstly, the paper will also discuss the impact of globalization and technology on the Ford company. Secondly, it will further shed light on the industrial organization model and the resource-based model to assess the returns of the corporation. The paper will finally discuss the vision and mission of the company, including the impact of stakeholders on the success of the company.Globalization
According to Grant, the key element in changing an industry's profitability is in the evolution of an industry's structure. Industries around the world have changed due to globalization and maturity. Both components have contributed to competition. The competition has increased as globalization has bought firms together by shrinking the space between them and providing them with the same market (Grant, 2008). The same is true for the Ford company. Globalization means using and being a part of the world economy and profiting from it.
Companies in the global economy need ways to supply and produce automobiles that don't only cater to the needs of international clients but develop something that caters to the needs of locals. To overcome the problem of attending to local needs, Ford, for example, has created a global scale network to assemble plants to get access to the greater supply-base. Ford's partnership with Mazda, for example, has made it easy for Ford to get Mazda's well-established supply base in Thailand. Given the hassle of building local supply and the pressure, companies go through to create local content; such partnerships help companies like Ford in globalization ( (Sturgeon & Florida, 2002).
But before adjusting to the world global economy, Ford has to struggle to be a part of the globalization. The reduced restrictions in trade in the emerging market after globalization has led to a wave of investment across the globe. Before the 1970s, the companies of automobiles were dominating the market in the U.S., which was called "Big Three." But after globalization permitted foreign vehicles to enter the market, the U.S. market for automobiles changed. For example, Japanese cars that were high-quality cars and introducing new modes of manufacturing changed the industry. Ford's competition was threatened by globalization and the other two companies' restrictions in trade in the emerging market after globalization has led to a wave of investment across the globe. Before the 1970s, the companies of automobiles were dominating the market in the U.S., which was called "Big Three." But after globalization permitted foreign vehicles to enter the market, the U.S. market for automobiles changed. For example, Japanese cars that were high-quality cars and introducing new modes of manufacturing changed the indust.
Ford Motor Company was founded in 1903 by Henry Ford and remains under family ownership. It is a global automaker that produces cars, trucks, and commercial vehicles. Ford has implemented new strategies to streamline operations and production, improve fuel efficiency and technology, and strengthen its financial position in order to remain competitive in the global automobile market.
The economy is driven by the exchange of goods and services—the .docxcherry686017
The economy is driven by the exchange of goods and services—the purchase and sale of products. In some cases, these products are tangible items that we can see and feel, like cell phones, medications, vehicles, and baseballs. In other situations, the product might be a service—such as lawn care, massage therapy, or a legal consultation. The American economy, in 2012, showed a gross domestic product (the value of goods and services produced) of $13.5 trillion (Federal Reserve Bank of St. Louis, 2013).
A number of laws govern business practices, including everything from marketing and advertising to packaging to liability issues regarding consumer harm. Regulatory agencies also exist to oversee commerce: the National Transportation Safety Board (NTSB); the Federal Trade Commission (FTC); the Federal Communications Commission (FCC); and the Bureau of Alcohol, Tobacco, and Firearms (ATF) are examples.
Product liability—determining who is responsible when a consumer is harmed—is a primarily legal issue. This chapter will focus more directly on the ethical issues that arise in business practices. Because trade ultimately occurs between individuals (companies are made up of people, just as consumers are persons), moral reasoning is clearly applicable in guiding decisions and actions. This chapter will explore several moral concerns that arise in the relationship between businesses (producers and sellers) and their customers.
9.1 The Issue: Design Flaws in Products
Ford Pinto
Associated Press
The Ford Pinto is a classic example of a product with a design flaw.
In 1968, the Ford Motor Company began producing a new subcompact car called the Pinto. This vehicle was designed and developed on an abbreviated timeline in order to get to market as quickly as possible. The Volkswagen Beetle was extremely popular, and Ford executives also feared that Japanese manufacturers would dominate the subcompact market if they did not get something on the market soon. With this in mind, the Pinto was designed and developed in about half the time that is spent on most vehicles. During its 10-year production, Ford sold over 2.3 million Pintos.
The vehicles had safety problems, however. In May 1972, the problem was first identified when a Pinto driven by Lily Gray was struck from the rear by another car. The fuel tank in the Pinto exploded, killing Gray and severely injuring her passenger, Richard Grimshaw. Several other instances of fuel tank explosions involving Pintos were reported; in one such case, a van traveling at about 55 miles per hour rear-ended a Pinto stopped on the side of the highway. The Pinto exploded, killing all three women inside as well as the van's driver. In total, the National Highway Traffic Safety Administration (NHTSA) determined that 27 people died as a result of the faulty fuel tank design in the Pinto; another 24 suffered severe burn injuries.
The Manufacturer Perspective
Without minimizing the seriousness of injury and death, it mu ...
Ford rushed production of the Pinto to compete with imports, taking only 25 months instead of the typical 43. Testing showed the gas tank was vulnerable in rear-end collisions, but Ford did a cost-benefit analysis finding it was cheaper to pay lawsuits than fix the problem. This decision led to hundreds of deaths and damage to Ford's reputation, showing they prioritized profits over safety. Engineers knew of the risks but management pressure suppressed concerns. The case shows the importance of considering safety above all other factors in design.
Pinto Fires
Running head:
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PINTO FIRES
by Dennis A. Gioia (used with permission)
On August 10, 1978, three teenage girls died horribly in an automobile accident.
Driving a 1973 Ford Pinto to their church volleyball practice in Goshen, Indiana,
they were struck from behind by a Chevrolet van. The Pinto’s fuel tank ruptured and
the car exploded in flames. Two passengers, Lynn Marie Ulrich, 16, and her cousin,
Donna Ulrich, 18, were trapped inside the inferno and burned to death. After three
attempts, Lynn Marie’s sister, 18-year-old Judy Ann, was dragged out alive from the
driver’s seat, but died in agony hours later in the hospital.
They were merely the latest in a long list of people to burn to death in accidents
involving the Pinto, which Ford had begun selling in 1970. By the time of the accident,
the car had been the subject of a great deal of public outcry and debate about its
safety, especially its susceptibility to fire in low-speed rear-end collisions. This particular
accident, however, resulted in more media attention than any other auto accident
in U.S. history. Why? Because it led to an unprecedented court case in which the
prosecution brought charges of reckless homicide against the Ford Motor Co.—the
first time that a corporation had been charged with criminal conduct, and the charge
was not negligence but murder. At stake was much more than the maximum penalty
of $30,000 in fines. Of immediate concern, a guilty verdict could have affected 40
pending civil cases nationwide and resulted in hundreds of millions of dollars in
punitive damage awards. Of perhaps greater concern, however, were larger issues
involving corporate social responsibility, ethical decision making by individuals
within corporations, and ultimately, the proper conduct of business in the modern era.
How did Ford get into this situation? The chronology begins in early 1968 when
the decision was made to battle the foreign competition in the small car market, specifically
the Germans, but also the growing threat from the Japanese. This decision
came after a hard-fought, two-year internal struggle between then-president Semon
‘‘Bunky’’ Knudsen and Lee Iacocca, who had risen quickly within the company
because of his success with the Mustang. Iacocca strongly supported fighting the
competition at their own game, while Knudsen argued instead for letting them have
the small car market so Ford could concentrate on the more profitable medium and
large models. The final decision ultimately was in the hands of then-CEO Henry
Ford II, who not only agreed with Iacocca but also promoted him to president after
Knudsen’s subsequent forced resignation.
Iacocca wanted the Pinto in the showrooms by the 1971 model introductions,
which would require the shortest production planning period in automotive history to
that time. The typical time span from conception to production of a new car was more
than three and a half years; Iacocca, however, wanted to launch the Pin.
Similar to An analysis of the Ford- Firestone Case (17)
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1. COMM351 Essay Danial Munsoor 3259882
Executive Summary
Ford-Firestone case is a unique and an appropriate example of violation of
business ethics by two renowned corporations, Ford Motor Company and
Firestone Tire Company, each of which was the manufacturer of a “different”
product. This essay talks about as to how the leading car manufacturer Ford, can
be held morally accountable for the various accidents and deaths which occurred
in US due to vehicle rollovers of its popular SUV known as the “Ford Explorer”.
However, Ford executives some how managed to put most of the blame on
Firestone by saying that the accidents and deaths occurred mainly due to tire
blowouts, and therefore “it is a Firestone tire problem and not a vehicle problem”.
On the other hand Firestone claimed that many of the accidents were mainly due
to the vehicle’s lack of stability and were not due to its tires. Indeed much of the
essay is about opposing statements made by the executives of Ford and
Firestone. Therefore, in order to have a better understanding of the case, it is
important to understand the difference between when an item is a “product in its
own right” and when it is a “component of another product”. When thousands of
parts came into a Ford assembly plant, Firestone tires were also like those other
components that were acquired by Ford. Therefore it can be presumed that the
tires were manufactured in a manner to suit the Ford specifications, and they did
become a part of the assembly process. At the time of assembly Ford should
have checked that whether the tires had the same high quality as other
components. Even according to the Utilitarian Approach, the manufacturer of the
product should be held responsible for the defects rather than the retailer, and it
is the duty of every producer to ensure that it produces the safest products
possible. Therefore based on the Utilitarian Approach, it can be concluded that
Ford was “unethical” because it was controlling the process through which
Explorer was produced, and therefore it is to be held morally as well as legally
responsible for the defects which were present in the vehicle.
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Corporate Responsibility, Ethical Blunders and Rollovers:
An analysis of the Ford- Firestone Case
INTRODUCTION:
Ethics is a term that describes a whole set of values around how to behave
morally, and treat people in ways that show respect for them. On the other hand
Business Ethics can be defined as moral principles and values that govern
decision and actions of a company. In the most basic terms, the definition of
business ethics comes down to one thing, i.e. distinguishing between right and
wrong and opting to do what is right (White, 2008). Ford-Firestone case is a
“unique” and an “appropriate example” of violation of business ethics by two
famous corporations, Ford Motor Company and Firestone, each of which was the
manufacturer of a “different” product.
ABOUT FORD:
Henry Ford founded The Ford Motor Company in 1903 in Dearborn, Michigan.
When the company began it used to produce few cars a day, with only two or
three men working on each car. Ford revolutionized the car making industry and
manufacturing by becoming the first one to use an assembly line technique to
produce cars (Frontenac Motor Company, 2009). It is one of the largest family-
controlled organizations in the world and has been under family control for more
than hundred years. It is the best truck maker in the world and comes second
after General Motors in car manufacturing. Ford manufactures various forms of
cars and light trucks. With a staff of 360,000 employees, Ford had revenues of
more than $160 billion in 1999 (Rourke, 2001).
ABOUT FIRESTONE:
The Firestone Tire & Rubber Company was established by Harvey S. Firestone
in 1900 in Akron, Ohio. The company began with only 12 employees, and it used
to supply rubber tires for wagons and buggies. It was a leader in the mass
production of tires. As years passed, Firestone realized that it had also had the
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capability for manufacturing tires for automobiles. Therefore in 1990, it merged
with Bridgestone Corporation of Japan to become Bridgestone/Firestone Inc.
After the merger, the company went on to become a pioneer in tire technology. It
developed more than 8,000 different types of tires for vehicles ranging from
passengers to agricultural equipment to race cars. In 1999 the company had
revenues of more than $20 billion (Rourke, 2001).
THE COMPANIES INVOLVED:
Ford Motor Company and Firestone was a partnership between the two industry
giants, Henry Ford and Harvey Firestone. This partnership began in 1908 when
Harvey Firestone supplied Henry ford with tires for his new Model T. Due to
friendships among the members of the two families, the business relationship
grew stronger (Noggle and Palmer, 2005). However, both the companies were
unaware that their century-long relationship would end in such a tragic way. And
it was in the year 2001 when both the companies announced that they will not
enter into new contracts with each other anymore (Noggle and Palmer, 2005).
WHO IS TO BE BLAMED?
In this essay, we will observe how the pioneer car manufacturer Ford, can be
held “morally accountable” for the various accidents and deaths which
occurred in US due to vehicle rollovers of its popular SUV known as the “Ford
Explorer”. According to a report, there were 700 injuries and 203 deaths due to
the Ford-Firestone product failures (Hoyer, 2001). Studies show that Explorer’s
lack of stability was mainly due to lower recommended psi and also due to the
modifications which were made to the Firestone ATX and Wilderness tires
(Rowell, 2008). However, Ford executives some how managed to put most of
the blame on Firestone by saying that the accidents and deaths occurred mainly
due to tire blowouts, and therefore “it is not a vehicle problem and is a Firestone
problem”. On the other hand Firestone argued that many of the accidents were
mainly due to the vehicle’s “lack of stability” and were not due to its tires. Indeed
much of the essay is about opposing statements made by the executives of
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Firestone and Ford. In other words, it was uncertain as to which product caused
the accidents and therefore which company should be held accountable.
Therefore, in order to have a better understanding of the case, we need to
understand the difference between when an item is “a separate product” and
when it is a “part of another product” (Noggle and Palmer, 2005).
AN ANALYSIS OF TIRE CRISIS:
Back in the mid 80s, Ford started working on one of its most popular SUVs
known as “Ford Explorer”, which was a replacement for the smaller SUV known
as the “Bronco II”. In May 1987, when a test (code named UN46) was done on
the Explorer prototype, it indicated that the stability of the prototype was worse
than Bronco II. According to a Ford internal memo, the optimal way to overcome
the stability issue was by lowering the center of gravity, widening the Explorer’s
wheel base, and using a smaller P215 tire. However, when further analysis was
done, Ford realized that expanding the wheel base and lowering the center of
gravity would have delayed the production, and hence it decided to act
“unethically” (Rowell, 2008). Therefore a month later in June 1987, another
memo was passed by Ford which approved the use of Firestone P235 ATX (not
a smaller tire) tires on the vehicle. In 1988, when a computerized test was done
on the ATX tires, it indicated “stability issues” at 35psi, but favorable results were
expected at 26 psi. Hence in order to “partially” resolve the stability issue, Ford
engineers offered a ‘back up plan’ and that was to set an inflation pressure to 26
psi (Noggle and Palmer, 2005). Moreover, an internal Ford test report published
on 25th November 1988 showed that Explorer was also lifting two wheels at a
speed of 55 mph due to a high center of gravity and front suspension system
(Rowell, 2008).
The P235 ATX tires were designed by Firestone specifically for this vehicle.
Despite of knowing the safety margin of 25-35 psi for the P235 ATX tires, in
January, 1989 Ford Motor Company went on to set the inflation pressure to 26
psi. Basically inflation pressure decides how inflexible the tire is: the lower the
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pressure, the more the flexing around the sidewalls (Noggle and Palmer, 2005).
The more the flexing, the greater the friction which results in greater heat being
produced and excessive heat deteriorates a tire’s performance, and this can
result in a “tire blowout”. As far as the ability of the tires to withstand heat is
concerned, it depends on the whether the tire is A rated, B rated or C rated. If the
tire is A rated, it means that it can withstand the excessive heat the most.
However if the tire is C rated then it can not withstand the heat at all. As far as B
rated tires are concerned, they fall in between the A and C rating category. Firstly
by setting a low inflation pressure and secondly by selecting C-rated tires, Ford
selected tires which were not heat resistant and could be expected to generate
excessive amount of heat (Noggle and Palmer, 2005). Another factor, apart from
the inflation pressure, that contributed to the tire damage was the excessive load
of the vehicle. Due to the large size of the explorer, the recommended pay load
was 750 – 1310 lbs. The pay load was such that it would have increased with
several passengers and cargo load, and this would have put even more burden
on the tires (Noggle and Palmer, 2005).
On 11th January, 1989 a meeting was held with Firestone regarding “jacking” (i.e.
lifting) the front suspension. As far as jacking the suspension was concerned, it
was not relevant from the stability point of view (Rowell, 2008). As mentioned
before, lowering the center of gravity could have resolved the stability issue to a
great extent, but Ford was unwilling to do so because then the production would
have been “delayed”. Therefore on 26th January 1989 Ford engineers stated that
P235 ATX tires were not of a higher quality and they have not met its stability
goal (Noggle and Palmer, 2005). Thus Ford decided to use a new set of
Firestone tires known as the P245 ATX tires.
The use of P245 ATX tires proved to be even worse. On 9th February, 1989 Ford
hired Arvin/Calspan Company to test the P245 tires. According to the test report,
there was a severe tread package separation from the tire carcass at 29 psi of
pressure. However, in an internal memo to Ford, Firestone did agree to the test
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report and admitted that the tire showed a sever tread separation. But Firestone
assured Ford that the tread separation won’t be much of a real problem (Rowell,
2008).
Firestone’s guarantee was good enough for Ford to continue with its decision to
use Firestone tires and to set the pressure to 26 psi. In addition to setting up the
inflation pressure, Ford officials also rejected some alternatives which could have
improved the stability of Explorer because they wanted to meet the production
deadline. It was in March 1990, that the first Ford Explorer was launched in the
American market. And on 12th February 1991, the “first” tread separation case
was filed against Ford and Firestone. However, both companies were unaware of
the worse problems which were to come. Soon after the first Explorers were
introduced in the market, tests showed that Explorer had a poor fuel economy.
This was however due to the “lower inflation pressure” which was adopted to
deal with the vehicle’s stability problems (Noggle and Palmer, 2005). Therefore,
in order to improve the fuel economy of the 1995 model, Ford went against its
engineers and decided to reduce the “rolling resistance” by making the tires
lighter. As directed by Ford, in the year 1994 Firestone decreased the weight of
the tires by 10%. However, the weight was reduced by making various
modifications to the tire, such as removing material etc (Rowell, 2008).
After the weight of the Firestone tires was reduced, the number of accidents with
the Firestone-Explorer grew “rapidly”. The accidents mainly occurred when the
tire’s tread literally separated from the tire’s body, which caused the explorer to
become incontrollable and rollover-frequently which led to deadly accidents
(Noggle and Palmer, 2005). In the process, both Ford and Firestone were sued
by the victims. For sometime, many of the Explorer-Firestone ATX problems did
not come to public attention. And it was in 1998, that the State Farm Insurance
Company reported 21 Firestone tire failures to National Highway Traffic Safety
Administration (NHTSA). This issue gave NHSTA a reason to investigate into the
matter. According to NHTSA, there were 14 Ford-Firestone cases already
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reported between1991 and 1995. However, NHTSA did not formally commence
its investigation until May 2000 (Noggle and Palmer, 2005). While NHTSA was
planning to investigate into the matter, Ford started to replace tires in Saudi
Arabia and in Venezuela, after it came across the similar patterns of accidents.
Ford was lucky that NHTSA was not authorized to request recall information from
overseas countries (Noggle and Palmer, 2005).
THE FIRESTONE TIRE RECALL:
On 9th August, 2000 Firestone executives voluntarily “recalled” approximately 6.5
million tires. The recall was the second largest tire recall in the History of U.S.
The recall campaign included several Firestone tires like P235, ATX, ATX II and
Wilderness AT, many of which were installed on the Ford Explorer (Noggle and
Palmer, 2005). According to a research the estimated tire replacement costs
were around $350 million. And if the fines and compensation charges were
included in the total costs to be shared by Ford and Firestone, the amount would
add up to approximately $1 billion. Moreover, when Ford was committed to the
recall, it was “very slow” in approaching the public and the media (Verschoor,
2000).
A COUNTRYWIDE SCANDAL UNCOVERED:
At that time, the complete proof of what caused the accidents was yet to be
discovered. However, studies suggest that there were numerous factors that
caused the deadly accidents. According to tire experts there were possible
design flaws which were due to poor materials and processes used in their
production. Moreover there were possible manufacturing irregularities at the
Illinois Firestone plant which produced most of the defected tires. Regardless of
whatever the weaknesses or flaws were there, it was almost clear that the
stability problems in the Ford Explorer were the “main” reason for the deadly
accidents (Noggle and Palmer, 2005). Further discoveries reveal that, despite of
recognizing the risks to the consumers, Ford deliberately decided not to stick to
its own design goals (i.e. expanding the wheel base and/or lowering the center of
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gravity) so as to save money (Rowell, 2008). According to NHTSA’s database
there were 3500 reports on tire failures, 13% were of Ford Explorers rollover due
to tire failure compared to 3% for all other SUV’s and light trucks (Noggle and
Palmer, 2005).
FORD AND FIRESTONE REACT:
As the number of accidents grew and the public got to know of the problems
associated with Firestone equipped Explorers, Ford and Firestone responded by
blaming each other. Masatoshi Ono, the CEO of Firestone completely denied
that the tires were defective or that the company was responsible for the
accidents. However, Firestone tried to put the blame on Ford for recommending
a very low inflation pressure, and it also stressed on the poor tire maintenance by
customers. On the other hand, Ford’s CEO at that time, Jacques Nasser,
portrayed from the starting that the problem was mainly due to Firestone’s tires.
He forcefully declared that the accidents were not due to the auto-maker by
stating that “this is a Firestone tire issue, not a vehicle issue” (Noggle and
Palmer, 2005). However, this statement of Nasser’s proved to be the turning
point and thus requires closer examination.
FORD’S CEO MAKES THE WRONG STATEMENT:
Nasser’s statement that “it’s a tire problem and not a vehicle problem” portrayed
that the Firestone ATX tires were a distinct product and not a component of the
Ford Explorers. It’s like saying that “brake problem is not a vehicle problem”
since a brake problem is very much a vehicle problem. It is important to consider
the fact that Ford went ahead than just simply selling Firestone ATX tires. It
forcefully modified the specifications that Firestone originally used in designing
the tires. Moreover it also determined the air pressure which was at the lower
end of the safety margin (Noggle and Palmer, 2005).
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9. COMM351 Essay Danial Munsoor 3259882
MANUFACTURER OR SELLER: THE MORAL DIMENSION
By nature, we are likely to place greater “moral responsibility” for the faults in
a product on its manufacturer (often called assembler) rather than on its seller.
However this perception is the key to understanding moral responsibility (Noggle
and Palmer, 2005).
A Utilitarian approach to moral responsibility requires placing moral
responsibility where it will do the greatest good. Generally it means locating
responsibility at that point from where the significant effects of harmful behavior
can be reduced without harming the society. According to the utilitarian
approach, the manufacturer of the product should be held responsible for the
defects rather than the retailer. Therefore it is the duty of every producer to
ensure that it delivers the safest products (Noggle and Palmer, 2005). Based on
the Utilitarian approach, it can be said that Ford was “unethical” because it was
controlling the process through which Explorer was produced, and therefore it is
to be held morally as well as legally responsible for the defects which were
present in the vehicle
The “legal issue” in this Firestone-Ford controversy is so tightly linked that it is
impossible to discuss one without discussing the other. Without doubt it is the
legal liability of the manufacturer of the product that comprises of various
components manufactured by other companies. Even if the component made by
the part maker contains a defect, the manufacturer of the product can be held
partially responsible if the accidents occur due to that defected part because the
component is a part of the product. As far as the legal liability is concerned, Ford
was legally responsible for the tragic accidents which took place due to tire
blowouts (Noggle and Palmer, 2005).
MORAL AND LEGAL RESPONSIBILITY FOR COMPONENT PARTS:
Perhaps the determination of Ford’s moral and legal responsibility depends partly
on whether the tires were seen a separate product “bundled” with Explorer or as
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a part of the vehicle. If the former is considered then Ford only transferred the
hazard from one buyer to another. However if the latter is considered then Ford,
as a manufacturer of the Explorer which includes the tires, not only transferred
but also helped in producing the hazard (Noggle and Palmer, 2005).
FORD IS RESPONSIBLE AND NOT FIRESTONE: A DEEPER ANALYSIS
When thousands of parts came into a Ford assembly plant, Firestone tires were
also like those other components that were acquired by Ford. Therefore it can be
presumed that the tires were manufactured in a manner to suit the Ford
specifications, and they did become a part of the assembly process. Actually tires
are the same as gas tank, air bags, brakes, steering and windshield. At the time
of assembly Ford should have checked that whether the tires were of the same
high quality as other components. However, the only difference between the tires
and other components was that the tires were covered up under a warranty
which was provided by Firestone and not Ford (Hoyer, 2001).
BMW REACTS IMMIDIATELY AS COMPARED TO FORD:
Comparing Ford with the German automaker BMW AG, BMW “immediately”
recalled 200,000 of its cars, after getting to know that there was a problem with
the front passenger seat airbags. According to NHTSA, the recall campaign
covers 2004-2006 5 Series, 2004-2006 X3 and 2006 3 series (Tutor, 2008).
Apparently the problem was that small cracks used to develop in the seat
detection mat which used to deactivate the front passenger air bags. However, if
the seat detection mat fails to sense a person, it deactivates the airbags. A BMW
spokesperson Tom Plucinsky further mentioned that due to small cracks the air
bag light used to indicate a deactivated air bag even if the passenger was sitting.
BMW responded to the problem by firstly extending the warranty to 10 years for
the above mentioned vehicles without any mileage limit. And secondly it replaced
the detection mats for the customer free of charge (Raia, 2008). By performing
this ethical act, BMW prevented disastrous accidents from taking place.
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11. COMM351 Essay Danial Munsoor 3259882
CONCLUSION:
In conclusion, Ford is the one to be blamed for the accidents because it did not
adopt proper measures to address the stability problems which were associated
to the Ford Explorer. Instead of taking the moral and legal responsibility to fix the
problem, it just pointed out fingers.
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12. COMM351 Essay Danial Munsoor 3259882
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Frontenac. (2009), ‘The Model T Ford’, Frontenac, Available:
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Rowell, J. (n.d), ‘The ford explorer: History repeats itself’, Cdrb, Available:
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13. COMM351 Essay Danial Munsoor 3259882
http://proquest.umi.com.ezproxy.uow.edu.au/pqdweb?index=5&did=62518256&S
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