Question

What did the memo entitled , "Fatalities Associated with Crash Induced Fuel Leakage and Fires" analyze? Group of answer choices The cost-benefit analysis of producing the Pinto as is or changing its design/components Other auto manufacturers’ cars and their risks The history of rear-end auto collisions in the U.S. None of the above

Answer 1

Answer: The cost-benefit analysis of producing the Pinto as is or changing its design/components.

Explanation:

In a bid to match the cost effective nature of Japanese cars, Ford decided to produce the Pinto and promised to do so within a certain timeline. This shorter timeline made designing the Pinto harder and led to it having a flaw that made it a fire hazard if it was hit from behind.

Ford could have modified the design or produced it as it was. In order to make this decision, they relied on cost-benefit analysis to tell them the cost of paying for settlements resulting from Pinto crashes vs the cost of improving the car. The memo that showed this was "Fatalities Associated with Crash Induced Fuel Leakage and Fires".