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Lee Iacocca
Has GM pulled a Pinto?
Has GM pulled a Pinto?

In the late 1960s, a charismatic vice president at Ford Motor Co. decided to bring out a low-priced car that could be produced for little money while bringing in huge profits. The executive's name was Lee Iacocca, and the Ford Pinto he championed became one of the most infamous models in U.S. automotive history. Why? Because to save money, Ford released a car that could explode in even low-speed rear-end collisions. I still teach the Pinto case to my law students as an example of how profits sometimes overwhelm principle. Even a savings of a couple of bucks per vehicle becomes significant when multiplied over the course of production. Recently, another Detroit CEO, Mary Barra, sat...

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