Case Study : Toyota And Ford

3044 Words Dec 7th, 2014 13 Pages
Since the 1970’s just about every vehicle manufacturer across the world has suffered some type of crisis as a result of unintended quality problems with the cars they manufacture. These types of crises threaten a company’s reputation for producing quality cars including their brand image. This paper aims to elaborate on two very well publicized auto makers and their respective crises and the critical management decisions that were made and their impact. Toyota and Ford as we all know have a very strong industry reputation as well as millions of loyal and faithful followers and owners of their vehicles; however, these two giants of the automobile industry had two of the most publicized cases in modern day history.
From 1973 to 1975, Ford’s case involved the explosion of its Pinto 's defective fuel system design which led to the death of 27 people according to the National Highway Traffic Safety Administration (NHTSA), not the 180 that was reported by other sources. It was discovered that Ford had a new design which would have decreased the possibility of the Pinto from exploding but the company chose not to implement the design, which would have cost $11 per car. Even though it had done an analysis showing that the new design would result in less fatalities; clearly a disastrous business strategy that could have saved Ford’s reputation and more importantly, people’s lives.
Similarly, we fast forward to 2009 where Toyota’s accelerator pedal recalls, where we discover a…

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