Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10 5/3/83; site cornell.UUCP Path: utzoo!linus!decvax!harpo!floyd!vax135!cornell!ddw From: ddw@cornell.UUCP (David Wright) Newsgroups: net.auto Subject: Re: airbags--a cost-benefit approach Message-ID: <4840@cornell.UUCP> Date: Mon, 18-Jul-83 19:21:05 EDT Article-I.D.: cornell.4840 Posted: Mon Jul 18 19:21:05 1983 Date-Received: Tue, 19-Jul-83 09:09:33 EDT Sender: ddw@cornell.UUCP Organization: Cornell Computer Science Lines: 39 From: ddw (David Wright) To: net-auto Paul Torek's analysis of the airbag issue is flawed for several reasons. According to an article in Reader's Digest (March 1980), General Motors estimated its costs at $509 to 581 1980-dollars per air-bag-equipped car. Ford said its costs could reach $828 by 1982. Repair bills for replacing a deployed bag would be up to 2.5 times the cost of original installment. In light of these facts, let me use $900 per car as my estimate of costs for air bag requirements (in 1983 dollars). Let's not. As I pointed out in an article a while back, GM has taken to estimating airbag costs by amortizing their tooling costs over ONLY ONE YEAR. This despite the fact that the equipment would last a lot longer than that. If GM tries to do this, they're padding the cost something awful. In addition, Torek's figures on cost/person do not take into account lower injury rates and less severe injuries. I have no figures for this, but if we assume fewer people in fewer hospital beds, and those in the hospitals having less severe injuries, I think the cost/person would drop by at least an order of magnitude. The total benefit has to include productive work saved, hospital costs saved, funeral expenses saved, reduced public outlays for survivors, etc. I admit this is hard to quantify, but it sure makes the situation look better. The costs of replacing an airbag may be high. However, if most of them go off when you need them, well...how much is your health worth? Besides, if most go off in significant collisions (available evidence indicates that this is a reasonable assumption), your typical tinfoil-and-balsawood car is gonna need a lot of repairing anyway. Hey, I \do/ wear a seatbelt... David Wright {vax135|decvax|ihnss}!cornell!ddw ddw.cornell@udel-relay ddw@cornell