Question

In 1968, Ford decided to develop firstly a new mini car called Pinto, aiming to challenge the Beetle in American market. The price for Pinto can't be over 2000 US dollars; R&D department found the distance between the oil tank and bumper is only 10 inches. Tailgate collision experiment indicated that if the rear car tailgated it at a speed of 21miles/hour, the oil leakage will be caused and further car bombing will happen. But if improve the design, the cost will be increased 11 US Dollars. If not change, the original design conformed to the US federal safety standard Change or keep the original design?

Answer 1

It can be mentioned that if the cost of the car doesn't exceeds the cost of Pinto, then it would be better correct the safety standards and take necessary actions to demonstrate the people how safe the new car is and in this regard, the people might not be hesitating to spend a bit more all in all and this can enhance all the other companies to take up the same so that the safety standards in the market are improved all in all