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You are in the shoes of Lee Iacocca, CEO of Ford motor company in 1971. You have ordered your engineers to develop a new economy car that will cost less than $2000 and weigh less than 2000 pounds. The car is in the final phases of development and you want it to be on the market for fall 1971. Ford’s engineers have discovered that with a full tank of gas and the left turn signal on, due to a fuel tank design flaw, the car is likely to explode, even in a crash with only a 30 mph impact, resulting in 180 burn deaths and 180 serious burn injuries and 2100 burned cars annually. It is estimated that Ford will have to pay out $49.5 million annually to settle lawsuits. The price of correcting the problem, however, will be $11 per car and cost Ford an estimated $137 million. Correcting the problem could also cause a delay in the rollout of the new model. What should you do Lee Iacocca?

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