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Ford Pinto Case Study

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Subcompact cars were a trend during the 1960’s. Well known international companies such as Volkswagen and Toyota were competing with each other in producing their own subcompact vehicles and fortunately both of these companies were able to succeed in European countries and Japan. Due to the rising demand of this type of automobile, car manufacturers in United States of America started to manufacture their own subcompact cars. The current president of Ford at that time, Lee Iacocca, recognized the market potential for this design of vehicles; he then led the designing of Ford’s first subcompact model car, namely Pinto on the year 1968. Due to the competition from various domestic and international automobile companies, Ford was influenced to accelerate the production of their first subcompact car. After for only 25 months of designing and manufacturing of the vehicle instead of a typical time frame of 43 months, Ford Pinto first debuted into the automotive industry as a two-door sedan with the entry model price at $1850 and followed by a hatchback and wagon version of the car later in 1972. The short time frame of the car from being a conception to the production surely raised some doubt among the sceptical during that time. Nevertheless, Ford Motor Company was still eager to market the car since it was a trend at the time.
During the first few years Ford Pinto was introduced to the world, the sales were remarkable. By January 1971, the Pinto had sold over 100,000 units and 352,402 for the entire 1971 production run. 1974 saw the most Pintos produced in a single model year with 544,209 units (“Ford Pinto,” 2015). However, during mid-1970’s, Ford Pinto was surrounded by numerous controversies due to several accidents involving the car. The first accident occurred in 1972 involving a Lily Gray who was travelling with a passenger, Richard Grimshaw. The car exploded as…...

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