Ford's Memo Proved Paying Death Claims Was Cheaper Than a $11 Fix

In 1973, Ford engineers knew the Pinto's fuel tank would rupture and burn in rear-end collisions — and a company memo showed that paying $200,000 per wrongful death claim was $87 million cheaper than an $11-per-car recall.

• Ford crash-tested the Pinto 40+ times at a secret facility — every test above 25 mph without modification ruptured the fuel tank
• The 1973 Grush/Saunby Memo valued 180 annual burn deaths at $200,000 each, totaling $49.5M — vs. $137M to fix 12.5 million vehicles
• The Pinto was rushed to production in just 25 months — half the industry standard — under Lee Iacocca's mandate to stay under 2,000 lbs and $2,000

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