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Old 01-10-2013, 07:44 AM   #4
So mote be it
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Originally Posted by Just Tom View Post
Exhibit One: Ford's Cost/Benefit Analysis
Benefits and Costs Relating to Fuel Leakage
Associated with the Static Rollover
Test Portion of FMVSS 208
Savings: 180 burn deaths, 180 serious burn injuries, 2100 burned vehicles
Unit Cost: $200,000 per death, $67,000 per injury, $700 per vehicle
Total Benefit: 180 x ($200,000) + 180 x ($67,000) + 2100 x ($700) = $49.5 Million
Sales: 11 million cars, 1.5 million light trucks
Unit Cost: $11 per car, $11 per truck
Total Cost: 11,000,000 x ($11) + 1,500,000 x ($ I 1) = $137 Million
From Ford Motor Company internal memorandum: "Fatalities Associated with Crash-Induced Fuel Leakage and Fires." Source: Douglas Birsch and John H. Fielder, THE FORD PINTO CASE: A STUDY IN APPLIED ETHICS. BUSINESS, AND TECHNOLOGY. p. 28.1994.

Narrator: A new car built by my company leaves somewhere traveling at 60 mph. The rear differential locks up. The car crashes and burns with everyone trapped inside. Now, should we initiate a recall? Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don't do one.
Business woman on plane: Are there a lot of these kinds of accidents?
Narrator: You wouldn't believe.
Business woman on plane: Which car company do you work for?
Narrator: A major one.

This is all this reminds me of
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