Question: Company A designed a subcompact, the model P , which weighed less than 1 0 0 0 kg and sold for less than $ 2

Company A designed a subcompact, the model P, which weighed less than 1000kg and sold for less than $2,000. Anxious to compete with foreign-made subcompacts, Company A brought the car into production in slightly more than 2 years (shorter 1 years from usual practices). Given this shorter time frame, styling preceded much of the engineering, thus restricting engineering design more than usual. As a result, it was decided that the best place for the gas tank was between the rear axle and the bumper. The differential housing had exposed bolt heads that could puncture the gas tank if the tank were driven forward against them upon rear impact.
Company A also tested rear impact when rubber bladders were installed in the tank, as well as when the tank was located above rather than behind the rear axle. Both passed the required rear impact tests. Although the federal government was pressing to stiffen regulations on gas tank designs, Company A contended that the model P met all applicable federal safety standards at the time. The Director of Automotive Safety for Company A, issued a study titled " Fatalities Associated with Crash Induced Fuel Leakage and Fires". This study claimed that the costs of improving the design ($11 per vehicle) outweighed its social benefits. A memorandum attached to the report described the costs and benefits as follows:
Screenshot 2020-06-14 at 3.00.24 AM.png
Image transcription text
Benefits Savings 180 burn deaths, 180
serious burn injuries, 2100 burned vehicles
Unit Cost $ 200,000 per deat... Show more
The estimate of the number of deaths, injuries, and damage to vehicle was based on the statistical studies. The $200,000 for the loss of a human life was based government agency study, which estimated social costs of a death.
Discuss the appropriateness of using data such as these in Company A's decision regarding whether or not to make a safety improvement in its engineering design. If you believe this is not appropriate, what would you suggest as an alternative? What responsibilities do you think engineers have in situations like this

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!