Wednesday, January 20, 2010

Ford's Famous Pinto

The Pinto became a focus of a major scandal in the 1970's when it was alleged that the car's fuel tank design proved faulty in accident situations. Avoiding what may have amounted to about $11 in repairs, Ford decided to settle lawsuits on a one by one basis. Not a great move by Ford in the history of consumer relations. Called the "barbecue that seats four" Ford eventually recalled all models after shelling out several million dollars and losing the confidence of consumers. Toyota might take a lesson from this.