June 23, 2005-What about Ford & GM?
What about Ford & GM?
What should we think about these two icons of America who are looking lately like they might topple over?
As much as I hate to say it, and as much as I hate to see my favorite car maker fail (I’ve always been a “Ford Man”), they get what they deserve.
When it comes down to it, you cut it or you don’t. There is no one who can carry a car company which does not cut it. The car business itself is not bad; look at Toyota or Nissan. It’s Ford and GM which are bad.
Bad management, bad labor relations, bad workers; I hold the management mostly accountable. They have known, or should have known, that their labor, pension, and health care costs were an overhanging problem. Yet, when the SUV boom came along they latched onto that as their savior, and they neglected to solve the problems with their costs.
Intractable unions you say? I don’t care. The job of management is to solve the problem; they did not. When a few years of heady SUV sales bailed out their balance sheets they stuck their heads in the sand. Now the SUV party is over and the fundamental problems remain.
And what about the sales prospects of their cars now that gas guzzlers are out of favor?
The big US carmakers neglected their sedans while binging on SUV’s high margins. Toyota and other manufacturers, who have continued rapid development of their automobiles, are taking the market share away from the big Detroit corporations.
I say that Ford and GM failed to find excellent managers to manage their business.
I say that Ford and GM failed to develop products that would capture the market when the SUV boom turned bust.
I say that Ford and GM failed to change their labor/management relationship into a partnership.
And I say that the labor force carries some responsibility too. They failed to recognize that their competitors were leaner and meaner, and that fat pensions and easy health care plans, would drag them down.
I say that they FAILED, and so they shall fall.
In the free market system, a company which fails will go down. Can’t be helped. They didn’t cut it and now they might not survive.
To the US industry I say: Make No Excuses. Only Excellence will be sufficient. Get off your asses and solve the problem; or you will die.
The sailor rants.
What should we think about these two icons of America who are looking lately like they might topple over?
As much as I hate to say it, and as much as I hate to see my favorite car maker fail (I’ve always been a “Ford Man”), they get what they deserve.
When it comes down to it, you cut it or you don’t. There is no one who can carry a car company which does not cut it. The car business itself is not bad; look at Toyota or Nissan. It’s Ford and GM which are bad.
Bad management, bad labor relations, bad workers; I hold the management mostly accountable. They have known, or should have known, that their labor, pension, and health care costs were an overhanging problem. Yet, when the SUV boom came along they latched onto that as their savior, and they neglected to solve the problems with their costs.
Intractable unions you say? I don’t care. The job of management is to solve the problem; they did not. When a few years of heady SUV sales bailed out their balance sheets they stuck their heads in the sand. Now the SUV party is over and the fundamental problems remain.
And what about the sales prospects of their cars now that gas guzzlers are out of favor?
The big US carmakers neglected their sedans while binging on SUV’s high margins. Toyota and other manufacturers, who have continued rapid development of their automobiles, are taking the market share away from the big Detroit corporations.
I say that Ford and GM failed to find excellent managers to manage their business.
I say that Ford and GM failed to develop products that would capture the market when the SUV boom turned bust.
I say that Ford and GM failed to change their labor/management relationship into a partnership.
And I say that the labor force carries some responsibility too. They failed to recognize that their competitors were leaner and meaner, and that fat pensions and easy health care plans, would drag them down.
I say that they FAILED, and so they shall fall.
In the free market system, a company which fails will go down. Can’t be helped. They didn’t cut it and now they might not survive.
To the US industry I say: Make No Excuses. Only Excellence will be sufficient. Get off your asses and solve the problem; or you will die.
The sailor rants.
posted by wingssail at 4:49 AM
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