OK – Bridgestone or Firestone, whoever it was who shipped out thousands of tires known to be defective prior to or shortly after release and chose to keep quite about it.
Yes, cars are safer, but that is not the discussion here.
Yes, every CEO knows the risk no matter which car is approved.
All agreed to, but again not the main point. We’re getting too dispersed in mental masturbation here.
The CEO of a Major Car Company gets a report from his research and development department concerning a new car, all set to be released that month. Orders are in, contracts signed, shipping dates arranged, transports lined up and deposits banked.
The report informs him that they have discovered that the fuel tank is not as secure as they thought, that tests have shown that if hit in the rear, the car has a 60% chance of exploding into flames, far above the acceptable 5% standard. Reasons are explained, and it all boils down to needing a simple $5 bracket installed in a key place to prevent this.
The report goes to the finance department and they calculate that the $5 bracket will cost, in wages, because every worker is union, at least $7.80 to install because the worker gets $14 an hour and can do 5 cars an hour, but by the time they total up all of the costs for many workers to handle the cars at maximum productivity, the cost comes to a couple of million. This will decrease the already fixed profit picture from the cars, which have already been sold at a fixed price to dealers.
The CEO evaluates the lessor cost of a later recall, with the bracket shipped out to dealers to install, the accountants bring up shipping costs, dealer reimbursement charges, public relations costs, potential lawsuits sparked by the inevitable cranks willing to deliberately damage their cars and blame it on faulty workmanship and the loss in public confidence, plus stock prices, all equaling a drop in the yearly profit picture. The cost is high.
So, he weighs the cost to the company, verses the cost from lawsuits involving deaths directly related to the missing bracket. The company lawyers estimate the percentage of actual victims who will eventually sue, depending upon how long the defect can be kept from the news and the public. Accountants give percentages of potential monies which can be placed in legal accounts depending upon how long the responsibility of the company can be concealed, to later be used for settling suits.
The corporate lawyers estimate the inevitable federal fines coming out of federal action after lawsuits have started and the length of time between the first suit and the government getting involved. A section of the lawyers gears up to start their government lobbyists acquiring gifts to ‘give’ to select congressmen to influence them to minimize punitive damages by the government.
Other lawyers gear up to start either delaying individual lawsuits until the claimants settled for less or die off while still another section gets ready to handle and prolong the inevitable group suite with reasons why the damages should be minimized. A smaller section starts seeking a scapegoat.
The PR department draws up a contingency plan to start counteracting the inevitable damage which will happen once the news media gets hold of the story.
All of this prior to the CEO making the decision to release the deadly cars or recall them prior to shipment and fix them.
He decides to ship them, because the alternative will be too costly to the company and the legal actions can be dragged out for decades at much less cost, giving the company time to make major profits and store up funds to pay off suits.
Just good business.
In the end, 150 people die from the faulty gas tank and 25 more are seriously injured and scarred for life.
The CEO weighed the risks and by giving the order to ship the cars, signed the death warrants for X number of human beings.
Now, suing the Corporation is more satisfactory, but along with the company being sued, the CEO, or whoever hid the information from the CEO, committed murder for selfish reasons, having nothing to do with any form of hate or revenge. That person should be found and brought up on charges.
Now, do you get what I mean?
It has nothing to do with the impossibility of making a cost effective absolutely safe car, or else we’d be selling air conditioned, leather bucket seated, surround sound equipped army tanks. Those might survive in normal traffic.
It involves an obvious defect and the people who choose to hide or ignore it because of costs or even the possibility of loosing their jobs.