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Product Recall ETM627 Brandon Gaunt- Ford Pinto November 18 1 What: Ford Pinto gas tank issues Recall Date: June 9, 1978 [5] Why: The gas tank filler neck.

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Presentation on theme: "Product Recall ETM627 Brandon Gaunt- Ford Pinto November 18 1 What: Ford Pinto gas tank issues Recall Date: June 9, 1978 [5] Why: The gas tank filler neck."— Presentation transcript:

1 Product Recall ETM627 Brandon Gaunt- Ford Pinto November 18 1 What: Ford Pinto gas tank issues Recall Date: June 9, 1978 [5] Why: The gas tank filler neck of the car had a tendency to break off during rear collisions. This made it possible for the gas tank to be punctured, causing explosive fires and multiple deaths. Incidents: 180 burn deaths, 180 serious burn injuries, 2,100 burned vehicles. Ford and NHTSA received reports of 2100 burned vehicles caused by the fires after rear end collisions. When the accidents occurred, the filler neck would break off and the gas tank would ignite. Crash tests revealed that in all collisions over 25mph that the gas tank would ignite. The burned vehicles led to a reported 180 deaths and 180 serious burn injuries. Number of Units Sold: 3,173,491 ($300 - $600) [1]. When Sold: January 1999 to March 2010

2 Management Issues ETM627 first name last name - Product due date 2 Recognition of Problem: The cribs that were affected by the recall have been manufactured since January More than 7 million drop-side cribs from multiple manufacturers have been recalled since The CSPC has received reports of 153 deaths primarily due to suffocation and strangulation and hundreds of other incidents [3]. Other manufacturers had recalled similar cribs in June 2010 [3]. Pottery Barn has developed a repair kit for the effected cribs which is available to consumers free of charge [2]. Pottery Barn Kids is a subsidiary of Williams-Sonoma Inc. Speed of Response: The response has been slow industry wide. The problems have been occurring over 10 years and because of a recent government investigation many drop-side crib manufacturers have began recalling the defective crib. Responsibility: No article was found that showed Pottery Barn Kids expresses any remorse for injuries their product has caused. In fact, the blame seems to shifted to the consumer for not properly assembling and maintaining the cribs [4]. However, the company did provide a method to correct the problem.

3 Impact of Recall ETM627 first name last name - Product due date 3 Legal Consequences: As a result of a government investigation on drop-side cribs, the CSPC has banned the use and sale of the drop-side cribs. The CSPC has also introduced more stringent testing for future cribs that will be manufactured [5]. Pottery Barn Kids did not actually take back any cribs and got around the new ban by providing customers with a repair kit that will modify the crib from a drop-side to a fixed-side crib. No lawsuits could be found against Pottery Barn Kids due to the crib defects. Reputation: The incident seems have little or no effect on the reputation of Pottery Barn Kids The parent company, Williams-Sonoma is a well known home design retailer with many subsidiaries. The company’s stock (WSM) has declined since July 14, 2010, the day the recall has been announced. This recall was recently publicized and the effect of the recall may not have fully manifested. Sales: Every drop-side crib manufacturer is affected by the new government regulations. The sale of cribs have not been affected, just the style of crib. Williams-Sonoma’s stock price is not indicative of their sales, just stockholders opinion of how the new regulations will affect the company in future along with other factors. Pottery Barns Kids was able to avoid refunds by providing a cheap fix to the consumers.

4 References (have at least 5) ETM627 first name last name - Product due date 4 [1] Saiontz, Kirk. (2010). Pottery Barn Crib Recall Issued as CPSC Proposes New Crib Rules. Retrieved from recall-new-cpsc-regulations [2] Mays, D. (2010). Pottery Barn Kids recalls drop-side cribs. Retrieved from dropside-cribs.html. [3] Plungis, J. (2010). US to Ban Drop-Side Cribs in Infant Safety Overhaul. Bloomberg Businessweek. Retrieved from in-infant-safety-overhaul.html. [4] Juvenile Product Manufacturers Association. (2009). JPMA Responds to Recent Safety Concerns of “Drop Side” Cribs. Mt. Laurel, NJ: Linda Woody. Retrieved from %20Side%20Cribs.pdf. [5] US Consumer Product Safety Commission. (2010). CSPC Proposes New Rules for Full-Size and Non-Full-Size Cribs. (CSPC Release No ). Washington, DC: Office of Information and Public Affairs. [make sure that the government agency who declared recall is listed]

5 Issues Date retrieved from web site vs. publication date Motivation of “authors” No author acknowledged Quotations around direct word-for-word copying vs “paraphrasing” APA or MLA style manual Identify acronyms first time used 4-8 slides, max 2 MB (limit graphics) Some technical content related to your specialization ETM627 first name last name - Product due date 5

6 /166/Ford-Pinto.aspx /166/Ford-Pinto.aspx Include technical information related to specialization Due on November 30th


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