5 ms·
Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C
by iooi 8y ago
Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don't do one.
- reviseddamage 8y agoWhich movie is this quote from? :)
- jwalton 8y agoFight Club
- lowkeyokay 8y agoAnd is probably a reference to the Pinto Memo - a cost-benefit analysis performed by Ford in 1973 [0] 0: https://en.wikipedia.org/wiki/Ford_Pinto https://en.wikipedia.org/wiki/Ford_Pinto
- McKayDavis 8y agoDirect link to Pinto Memo anchor: https://en.wikipedia.org/wiki/Ford_Pinto#Cost-benefit_analysis,_the_Pinto_Memo https://en.wikipedia.org/wiki/Ford_Pinto#Cost-benefit_analys... PDF of Pinto Memo: https://www.autosafety.org/wp-content/uploads/import/phpq3mJ7F_FordMemo.pdf https://www.autosafety.org/wp-content/uploads/import/phpq3mJ... Fight Club "recall formula" segment: https://www.youtube.com/watch?v=q7bEkk5GHwg https://www.youtube.com/watch?v=q7bEkk5GHwg
- karolist 8y agoThe one that first rule prohibits us talking about it.
- curiousjorge 8y agosomebody broke the second rule.
- zdw 8y agoMaybe _Unsafe at any Speed_ ?
- rkangel 8y agoEven assuming you leave morals out of the argument, there are more variables, like the effect on future sales due to reputation (which could affect the equation either way).
- dgritsko 8y agoThey're quoting the movie "Fight Club."
- deleted 8y ago[deleted]
- 101001001001 8y agoThis quote happens while they are sitting in an airplane...
- iooi 8y agoI don't agree with this being detached from the parent. It's directly related to the quote: "the `industry' felt the losses would be in the acceptable range"
- Sohcahtoa82 8y agoAre there a lot of these kinds of accidents?