Jack Ward is working in product development for an auto parts contractor. Ward’s firm received a large contract last summer to manufacture transaxles to be used in a new line of front wheel drive cars which a major auto manufacturer plans to introduce in the near future. The contract is very important to Ward’s firm, which has recently fallen on hard times. Just prior to obtaining the contract, half of the firm’s employees, including Ward, had been scheduled for an indefinite layoff. Final testing of the assemblies ended last Friday. The first shipments are scheduled for three weeks from today. As Ward began examining the test reports, he discovered that the transaxle tended to fail when loaded at more than 20% over the rated capacity and when subjected to strong torsion forces. Such a condition could occur with a heavily loaded car braking hard for a curve down a mountain road. The results would be disastrous. The manufacturer’s specifications call for the transaxle to carry 130% of its rated capacity without failing. Ward showed the results to his supervisor and the company president, who indicated that they were both aware of the report. If they did not deliver the assemblies on time, they would lose the contract. Ward must now decide whether to show the test results to the auto manufacturer. If you were Ward, what are the chances that you would notify the auto manufacturer?
1. Explain the reason why you would or would not notify the auto manufacturer in 150-500 words.