$11 vs. a Burn Death

Benefits and Costs Relating to Fuel Leakage Associated with the Static Rollover Test Portion of FMVSS208

From Ford Motor Company internal memorandum: “Fatalities Associated with Crash-Induced Fuel Leakage and Fires.”:

Savings: 180 burn deaths, 180 serious burn injuries, 2,100 burned vehicles.

Unit Cost: $200,000 per death, $67,000 per injury, $700 per vehicle.

Total Benefit: 180 X ($200,000) + 180 X ($67,000) + $2,100 X ($700) = $49.5 million.

Sales: 11 million cars, 1.5 million light trucks.

Unit Cost: $11 per car, $11 per truck.

Total Cost: 11,000,000 X ($11) + 1,500,000 X ($11) = $137 million.


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