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Why do we have a Ford Pinto banner at the top of the page?
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.
According to Lee Iacocca (who was at Ford at the time), the reason Pintos caught fire so easily after a relatively light collision was due to the filler neck ripping out of the tank and spilling fuel. Plenty of cars had fuel tanks behind the axle back then. ;)
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