Presented by :-Group B1

Lee was honest and up front about what he wanted from the Ford Pinto, “Lee’s Car”:2000 lbs for $2000

Nothing else would compete with Datsun & VW

1946 - Iacocca started at Ford as a student engineer.

1956 - a major breakthrough. Sales of Fords were poor, and Iacocca's district, Philadelphia had the worst performance of all, but he introduced a novel idea: A new ’56 Ford for $56 down and $56 a month! Within three months Philadelphia's figures moved from worst to best. Iacocca was promoted to district manager of Washington, D.C

23 months to roll-out (Not 45 !!!)

PRODUCT OBJECTIVES:1. TRUE SUBCOMPACT :

Size & Weight 2. LOW COST OF OWNERSHIP

Initial price, Fuel consumption, Reliability Serviceability

3. CLEAR PRODUCT SUPERIORITY Appearance, Comfort, Features, Ride and Handling, Performance

Lee Iacocca was fond of saying, "Safety doesn't sell."

Business Culture & Industry Practices - B to C

•Early 1900s: Caveat Emptor

–A Latin phrase meaning “let the buyer beware” - what you see is what you get, &if it’s not what you expected, too bad

–Belief that competition in the marketplace corrects abuses

Responsibilities to Investors

• Obligation to make profits for shareholders.

• Shareholder’s Wealth Maximization

Three concepts of social responsibilityThree Concepts Of Social Responsibility

• First company to sell cars cheapest and lightest in the market (Limits of 2000)

• Duty Of Consumers to be aware of features of car before buying

• No Violation of requirement standards• Competing with foreign manufacturers• Prior Experience “ Safety does not sell”• Cost Benefit Analysis : 49.5 Vs 137 Million

Why Ford is right ?

Pinto Recall

• Ford was first urged to recall the Pinto in 1974, by the nonprofit Center for Auto Safety.

• Late in 1978, Ford recalled all 1971-1976 Pinto models (1.5 million cars)

• Modifications – Longer fuel filler neck– Plastic shields

• Protected from rear differential• Protected from rear shock absorber

Thank You !!