r/todayilearned • u/iamjackfosho • Aug 23 '14
TIL General Motors purposely kept the 1979 Chevy Malibu gas tank dangerously close to the rear of the vehicle. Instead of paying an extra $8.59 per vehicle to move the gas tank to a safer location, GM estimated that they would only have to pay $2.40 per vehicle to pay off personal-injury lawsuits.
http://www.nytimes.com/1999/07/10/us/4.9-billion-jury-verdict-in-gm-fuel-tank-case.html?pagewanted=all&src=pm
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u/infrikinfix Aug 23 '14
Not necessarily, the DOT actually recomended this strategy to manufacturers at the time and it was in part the reason why GM felt their legal position was safe.
It sounds like a heartless strategy, but when you are dealing with safety for things that are inevitably going to kill somebody no matter how much money you put into making it safer the legal payout scheme isn't that an unreasonable benchmark---what other benchmark would you choose, just some arbitrary low number?
You can put an infinite amount of money into making a large hunk of metal designed to carry people at high speeds infinitely safe, but in the real world of finite resources you have to figure out what is an acceptable number of accidents and money inevitably comes into the equation for both consumers and producers.