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To be more specific, the fuel tank was placed between the rear bumper and rear differential. In a rear end collision, the tank would get sandwiched by the bumper and differential, which had bolts protruding out the back and would pierce the tank, spilling fuel onto the road.
Additionally, rear end collisions would bend the frame in a way that jammed the doors so you couldnt get out.
They figured that people would die and their cost benefit analysis assumed a certain number of deaths and lawsuits. The resulting recall and larger than expected number of deaths and lawsuits made it a huge loss for them.
Chuck Palahniuk, Fight Club
That design is even worse than I realized. It’s fucked that didn’t put them out of business honestly