On Mon, Jan 25, 2010 at 5:26 PM, David B. Shemano <[email protected]> wrote:
> But in any event, the decision of where to install the Pinto gas tank was not 
> primarily driven by a narrow goal of profitablity, but by a strategic goal of 
> producing a car that was less than 2000 pounds and $2000 dollars.  The 
> placement of the tank was primarily driven by the fact that any alternative 
> would have excessively reduced the trunk space in a car of that size.  Ford 
> was aware that the placement of the gas tank created special risks, but the 
> placement of the gas tank anywhere would have created special risks (which is 
> also inherent in producing any smaller/less expensive car).  Ford did prepare 
> cost-benefit analysis for certain changes to the tank  (which valued a human 
> life at $200,000), but the analysis was not for internal decision-making but 
> for the NHSTA, which was considering a rule change for all automobiles, not 
> simply the Pinto, and Ford wanted to show the cost for millions of cars vs. 
> the expected life savings (the $200k number was used by the NHSTA).  The 
> analysis did not take into consideration any possibility that the tank 
> placement would be deemed a defect and there would be jury awards.  Ford 
> never thought the car was unsafe or had a design defect.  At the end of the 
> day, while the Pinto had special risks, it was no worse than other comparable 
> cars produced at the time.
>



David,
So you agree that it is ethically abhorrent to do cost-benefit
analysis based on narrow profit/loss considerations alone?

If so, I think that'll help narrow down the points of contention here a lot.
-raghu.



-- 
Seeing is deceiving. It's eating that's believing.
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