With the intention to compete in the car market with other companies such as Volkswagen and Japanese car companies

With the intention to compete in the car market with other companies such as Volkswagen and Japanese car companies, Ford Motors have stuck to a confined design and inadequate safety measures even though Ford Pinto met the federal safety standards.
The aim of the production of the subcompact is to break into the market as soon as possible and design was done within a short time frame. The safety aspect was not the priority for the production. According to then Ford Pinto’s president Lee Lacocca , safety feature will not help gain profit. Utilitarian approach states that we must know what action will bring most good in short term as well as long term. The Cost-Benefit approach requires the decision that will have most gain in terms of cost. Firstly, all options should be assessed. In Ford Pinto’s case, decisions on whether safety aspects of the car are prioritized or cutting the fitting cost of the gas tank design during the productions are pivotal on the consequences. Another big call to make is after the introduction of Ford Pinto into the market where numerous accidents were reported where there were burn fatalities. Ford Motors’ field recall coordinator , Dennis Gioia has to decide whether to recall or go against it after two millions Pinto were sold.
The second step will be assessing the cost for each option. The cost for fitting piece of plastic so that the gas tank can be placed over the axle of the car can be determined. The design of gas tank placement is which was expected to prevent fire after collision from the rear was overlooked due to cost limitation and it will limit the space for luggage compartment. This design focused on utility of the subcompact and the company has set the maximum price of $2000 for the car model. The value of compensation for casualties are estimated at merely $200 000 for one life according to National Highway Travel Safety Administration (NHTSA). The cost of compensation for casualties are weighed against cost of recalling sold cars.
The third step is to execute the action that produces most benefit in terms of cost.