Topic > Ford Proto Case Study: Ford Pinto Case Evaluation

A small piece of plastic may be placed between the gas tank and the housing to protect the tank from bolts that could puncture it. This small piece of plastic is called a baffle. The deflector weighs about a pound and is estimated to cost between $6.65 and $11. Furthermore, this increase in price and weight would change the specifications established by Iacocca. Additionally, changing any aspect of this vehicle would affect production capacity and pricing. For this reason any suggestion of modification to the Ford Pinto was declined. Ultimately, Ford rejected any changes to the Pinto and based its decision on a cost-benefit analysis. For this analysis to work, Ford had to compare the cost of adding the wind deflector to every vehicle produced with the estimated cost of a fatal crash and corresponding lawsuit. According to Dowie (1977), the auto industry pressured the National Highway Traffic Safety Administration, or NHTSA, to provide a dollar amount equal to the value of one human life. The result was the amount of $200,725 and Ford used this amount to justify non-payment