Facts
Around 1967 Ford Motor Company decided to design a small size car called the Ford Pinto. The automobile industry at the time (and still is) was highly competitive and very cyclical. In the late 1960's, America began to see the influences of foreign vehicles. Prior to that, cars were bigger and less fuel efficient, allowing the Japanese to gain substantial market share with the smaller, more economical vehicles, and the need to react to this pressure was even greater at Ford. Even though they held the number two spot in market share behind General Motors, they only held a 22.3% market share compared to General Motors at 46.4%, a very significant difference.
There was strong competition for Ford in the American small-car market from Volkswagen and several Japanese companies in the 1960's. In order for Ford to stay competitive and fight off competition, they rushed its newest car the Ford Pinto into production in much less time than is usually required to develop a car. The regular time to produce an automobile was 43 months; Ford took only 38 months. Before production, the engineers at Ford discovered a major flaw in the cars' design. In nearly all rear-end crash test collisions the Pinto's fuel system would rupture extremely easily. Safety was not a major concern to Ford at the time of the development of the Pinto. Lee Iacocca, who was in charge of the development of the Pinto, had specifications for the design of the car that were uncompromising. These specifications were that "the Pinto was not to weigh an ounce over 2,000 pounds and not cost a cent over $2,000." (1) Any modifications even if they did provide extra safety for consumers that brought the car closer to the Iacocca's limits were rejected.
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(1) Mark Dowie, "Pinto Madness," Mother Jones, September/October 1977.
Mallor, et al., "The Legal Environment of Business." Regis University Textbook 2005
(2) IEEE Code of Ethics Website - http://www.ieee.org/portal/site/mainsite/menuitem.818c0c39e85ef176fb2275875bac26c8/index.jsp?&pN
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Fordism changed American industrial and consumer in many ways such as Henry Ford developed new techniques of car manufacturing and marketing that made it easier for ordinary American citizens to try themselves. After three years of establishing his company “Ford Motor Company” in 1905, Ford introduced to the American people “Model T” for which was a light-weight vehicle that can handle to cruise the country’s poorly maintained roads. In Europe for which the car that is mostly used over there is the “Mercedes” for which was targeted for high-class people of society over there and were superior in craftsmanship in the car manufacturing; however, Ford focused on mass production
Henry Ford’s development of the single and unchanging automobile model meant the possibility to concentrate upon a single cheap car for the masses. When The Ford Company began to make Model C for $900, Model F for a thousand, and Model B for two thousand, the profits began to drop more and more each year and progress was being made backwards. The Ford factory was taken control over by Henry who stopped the production of
Shortly afterwards, with financial backing from private investors, Ford established the Detroit Automobile Company. He later withdrew from the venture after a disagreement with business associates over numbers and prices of cars to be produced. Working independently in a small shed in Detroit, Henry Ford developed two four cylinder, 80-horsepower race cars called the “999” and the “Arrow”, with $28,000 of capital raised from friends and neighbors. Henry Ford established a new shop on June 16, 1903. In this facility the Ford Motor Company began production of a two cylinder, eight-horsepower design called the Model A. The company produced 1,708 of these models in the first year of operation.
When Ford introduced the Mustang in 1964 there was no immediate reaction from General Motors, but by August of '64, just four months after the Mustang's introduction, GM realized the appeal of a four seat sports car. Ironically, the Mustang was created in response to the Chevrolet Corvair Monza!
At the time that he started Ford Motors Company, most people did not drive cars, and hadn't even considered purchasing a car. Henry Ford is famously quoted saying, “If I had asked people what they wanted, they would have said ‘faster horses’”. His extremely successful Model T, nicknamed the Tin Lizzie, fundamentally changed the automotive industry. Ford understood that most of the American population was in the working class and could not afford to buy a car, so he decided to create a standardized vehicle for the masses. The Model T was durable, reliable, and most importantly, affordable. However, marketing strategies were crucial, since previously people hadn't even thought of buying a car. When Ford first introduced the Model T, he ensured that there was a great amount of publicity surrounding it in every newspaper possible to get the word out. Publicity is just as critical today if not more, and Ford understood that from very early
After the Ford Motor Company was founded, they began assembling cars in July 1903 at a plant on Mack Avenue, Detriot. It was not until five years later, in 1908, when the famed Model T was introduced. The constant growth in demand for this vehicle was the reason that Ford developed a mass-production method in order to create what we now know as economies of scale, where in producing
Henry Ford1863-1947Henry Ford's parents left Ireland during the potato famine and settled in the Detroit area in the 1840s. Ford was born in what is now Dearborn, Michigan. His formal education was limited, but even as a youngster, he was handy with machinery. He worked for the Detroit Edison company, advancing from machine-shop apprentice to chief engineer. In 1893, Ford built a gasoline engine, and within a few years, an automobile, still a novelty item of the rich or do-it-yourself engineers. In 1899 Ford left Edison to help run the Detroit Automobile Company. Cars were still built essentially one at a time. Ford hoped to incorporate ideas from other industries -- standardized parts as Eli Whitney had used with gun manufacturing, or assembly line methods George Eastman tried in photo processing -- to make the process more efficient. This idea struck others in his field as nutty, so before long, Ford quite Detroit Automobile Company and began to build his own racing cars. They were good enough to attract backers and even partners, and in 1903, he set up the Ford Motor Company.He still met resistance to his ideas for mass production of a car the average worker could afford. But he stuck to his goal and finally in 1908, began production of the Model T. Ford gradually adapted the production line until in 1913, his plant incorporated the first moving assembly line. Demand for the affordable car soared even as production went up: before Ford stopped making the model T in 1927, 15 million had been sold, and Ford had become the leading auto manufacturer in the country. In addition to the moving assembly line, Ford revolutionized the auto industry by increasing the pay and decreasing the hours of his employees, ensuring he could get enough and the best workers. During the Model T era, Ford bought out his shareholders so he had complete financial control of the now vast corporation. He continued to innovate, but competitors (growing more powerful though fewer in number) began to cut into Ford's market share.Ford became interested in politics and as a successful and powerful business leader, was sometimes a participant in political affairs. In 1915, he funded a trip to Europe, where World War I was raging. He and about 170 others went -- without government support or approval -- to seek peace.
Foreign markets were beginning to show promise with the vehicles that were going to put out on the market. The Ford Motor Company began to feel the pressure and felt that it needed to be in the limelight of the competition. Lee Iococca, the CEO of Ford, decided that it was time for a change and thus the Ford Pinto was introduced. However, the Pinto had numerous flaws that cost the Ford Company more than ever anticipated.
Model T’s were everywhere in America, even long after Ford stopped production in 1927. (Henry) While Ford was the number one brand, selling the most cars throughout the early 1900’s, the Model T created a new industry that is distinctly American; the auto industry. Three manufacturers, Ford, General Motors, and Chrysler dominated the American auto industry, and all three companies still produce cars today. The Model T gave birth to the competitive auto market. To this day, car companies in America are constantly racing to innovate, improve, and outsell their competitors. Manufacturing of cars “became the backbone of a new consumer goods-oriented society. By the mid-1920s it ranked first in value of product, and in 1982 it provided one out of every six jobs in the United States.” (history –idk yet) The demand for cars also resulted in a booming petroleum industry, and a high demand for metals, like steel. ( History idk yet) Furthermore, with so many people driving cars, construction of roads was necessary. The popularity of automobiles set off a chain reaction that created new opportunities all across the country. All sections of the modern automotive industry, from marketing to manufacturing, as well industries like petroleum refining, steel production, and road construction, can trace their beginnings to the Ford Model
He looked through hundreds of books on bicycles and books on horse and buggies. Ford decided to use wheels from a bicycle, and the same steel framing. From the horse and buggy, he took the idea of the shape of the actual frame. He also made a handlebar that was in the same place as horse rider for a buggy. When Henry For opened his first automobile plant, not only did it bring much attention to the industry, but it also made people want to own a car so that they looked “cool”. People knew that this was going to be a successful industry so they wanted to work in it. Even though most people think that the first true car ever made by Henry Ford was the Model A; they are actually being deceived. Henry Ford’s first actual cars were made for racing. Only a year or so later did Ford start making Model A’s.
The Automotive Industry in the United Stated was the market leader until the early 60s, however, many countries have begun to invest in the car industry, in particular, the countries of Europe. Despite the American automotive industry has been a market leader in the beginning of the century, the United States opened a new period in the history of the American automotive industry through an efficient production model invented by Henry Ford. The cars were manufactured on a large scale which led to the reduction in costs. In the decade of 30, the United States was present in several parts of Europe marking the American power in the industry. In the last 50 years, European companies have begun to expand their products to the market international. Practically, this same period, the Japanese industry began to expand its production to foreign markets. In the 50 's, the United States held approximately 85% of the world production car, however, in 1960, production of the US automotive industry dropped to 55% (Calandro). In this period, the production of European countries and Japan grew
Ford’s production plants rely on very high-tech computers and automated assembly. It takes a significant financial investment and time to reconfigure a production plant after a vehicle model is setup for assembly. Ford has made this mistake in the past and surprisingly hasn’t learned the valuable lesson as evidence from the hybrid revolution their missing out on today. Between 1927 and 1928, Ford set in motion their “1928 Plan” of establishing worldwide operations. Unfortunately, the strategic plan didn’t account for economic factors in Europe driving the demand for smaller vehicles. Henry Ford established plants in Europe for the larger North American model A. Their market share in 1929 was 5.7% in England and 7.2% in France (Dassbach, 1988). Economic changes can wreak havoc on a corporation’s bottom line and profitability as well as their brand.
The Ford Motor Company inspired a manufacturing revolution with its mass production assembly lines in the early 20th century. Ford and Lincoln are one of world's most well known automotive brands, most known for the Ford Mustang, and F-Series pickup trucks. Henry Ford incorporated Ford Motor Company in 1903 at Dearborn, Michigan. Ford Motor Company is known as one of the largest automobile companies in the world. (DATAMONITOR: Ford Motor Company, 2010 p. 4). Since 1980, Ford has been able to remove $5 billion from its operating cost (Brady, 1986, p. 8). The Ford Motor Company has around 181,000 employees and 65 plants worldwide using the automotive brands Ford and Lincoln (FMC Annual Report 2013, p.149).
By 1899 Ford created a more proper looking motorcar with the help of wealthy businessman William Murphy. It had high wheels, a padded double bench, brass lamps, mud guards, and a "racy" look. In the same year Ford founded the Detroit Automobile Company. Within 3 years Ford had built an improved, more reliable Quadricycle, using a four-cylinder, 36 horsepower-racing engine. In 1901 his car beat what was then the world's fastest automobile in a race before a crowd of eight thousand people in Grosse Pointe, Michigan. The publicity he received for this victory allowed Ford to finance a practical laboratory for refining his auto ideas. In 1903 Ford launched his own car company, The Ford Motor Car Company, and by January 1904 he had sold 658 vehicles. By 1908 he built the famous Model T, a car that was affordable to the middle class. The automobile was no longer the toy of the rich.
4. Unknown. Ethics. Santa Clara University Markkula Center for Applied Ethics. 29th March 2004. http://cseserv.engr.scu.edu/NQuinn/COEN288/EngrHandbook_Ethics.pdf