The American Auto Dilemma.
Buy or Good-Bye, the choice is ours.
When I say the choice is ours, we the people, do have more power than we believe, and it is beginning to morph into it’s full potential as our use of the Internet is bringing us together in common interest “packs”. I say “packs” because that is how we are choosing to come together through converging interests. One of the best illustrations of “packing” is the phenomenon created by our President Elect
Barack Obama, who took full advantage of today’s technologies through the use of the social networks, (Facebook, My Space, Google, Linked In, etc.) discussion forums, and every other tool available to reach out to both voters, and potential or new voters, where he ultimately dominated both in fundraising, and as a result, the polls, therefore gaining the Presidency. The constant theme was change, and after eight years of misery, a complete lack of leadership, a financial meltdown, and the worldwide decline of America’s respect and credibility, who wouldn’t embrace change?
I’ll save that discussion for another time, but the point I’m getting to is that any plan GM or the Big Three come up with, must include a much more significant use of the Internet and it’s available tools to reach out to energize and listen to customers, both in it’s efforts in product and research & development. GM has made a beginning,
GM Communicates with customers but there is much more to be done, and it must be done with the mindset that there are far more ideas “out there” than inside the company walls, and that customer input, must be captured and developed to foster creativity inside the walls to create a true customer relationship. They must also address as at least what I see as two major issues, those being the perceived quality gap (American cars have consistently improved in the JD Powers ratings), and the huge pricing difference available to a customer if they shop around. The American car buyer seems to feel dealers are ripping them off. Web focus groups could deal with these issues.
With that being said, I am very much in favor of our Government working with, and I hate the term “bail out”, our automobile manufacturers to determine if they really can survive once we get through (if/when) this financial crisis that is not only affecting US manufacturers, but auto manufacturers around the world, most of which are partially subsidized by their respective governments. To better understand where GM is coming from (and the others as well)
GM Facts and Fiction, I think, with some facts, rather than news “sound bites” you will better understand why I am in favor of government working with our manufacturer’s when it appears to be against the tide of sentiment. Also, a recent survey by Peter Hart research,
Peter Hart Survey sponsored by the auto industry (now don’t be cynical) shows that despite all the negativity, there appears to be (within this particular study) a willingness to give them a shot. I fall into that group and here is why.
I do agree with the Congress, and that doesn’t happen often, that the manufacturers do need to submit a plan with actionable, measurable items, as well as a plan for updating. However, PLEASE do not tell me that Congress will be the deciding or overseeing body, as they have consistently proven they cannot manage what they have already taken on. For a shining example, lets look to the recent and ongoing financial “bailout” where to date, they don’t have a clue where $250 BILLION dollars went, and I’ll bet that the
80/20 rule (Pareto Principal) is alive and well in Congress, and only 20% of our esteemed representatives bothered to read the documents associated with the bailout plan. But again that is for another time. Look at the ongoing demise of our educational system. Despite the fact we have the highest cost per student in the world, our rankings with the rest of the world are sinking rapidly. But once again, another time.
America invented the automobile, taught the Japanese how to do it, and they then went on to do it better. How and why did they do it better? For the how, they listened to an American statistician, Dr. W. Edwards Deming who taught a nation the premises for
cost effective and efficient management principles. The Japanese learned, implemented these procedures, then fine-tuned these principles that evolved to Kaizen (continuous improvement), and then further evolved into six sigma, which they then came back to teach us and it became the cornerstone of GE’s growth under Jack Welch. How’s that for irony?
For the why, they had as a nation the sense of urgency we used to have when we were a developing nation. They knew, that as an island nation they had to export to survive, and to do that they had to have quality and value, which became part of their national pride.
The automobile industry is now at the crossroads of a new era with the focus on going green and eliminating the use of fossil fuels so we no longer send billions of dollars to nations that want to kill us. I would still like to believe that we, as a nation, have the capability to band together to lead this effort and develop the vehicles for the future. We need the sense of urgency Japan exhibited as they developed their automobile supremacy. We need to work together as a Nation.
I believe that the current management is getting a bit of a bad rap, because as is the American way, they still had to make quarterly profit numbers to satisfy Wall Street and that, by definition shortens long term focus. As a result, they were manufacturing, and continued to manufacture cars that Americans craved, and unfortunately, those happened to be gas guzzling trucks, Hummers, and SUV’s etc., and boy did they get stupid fast as gas prices climbed towards and above $4.00/gallon. I also am certain there is a great deal of room for improvement.
I’ve often seen the bad rap they get because they make and sell smaller cars into the European Markets. There’s two primary reasons for that as I see it, one being the European road systems do not accommodate larger cars, and the
European Gas Prices: are significantly higher than the prices we have paid for years. If we, as a nation, had stayed true to becoming oil independent after the 1972 embargo, after spending hours in line to buy gas, we would certainly have a different environment today. Had we had the foresight, as a nation, and some argue for it now, to impose a gas tax with the revenues going towards developing alternative energy sources, we would not have what we have today. We cannot blame the auto industry for our nation’s lack of commitment to a comprehensive energy program. Perhaps with new leadership that will change.
I believe that as a nation, we have stood by docilely while our leaders negotiated many unfavorable trade policies, that provided minimal protection for our middle class jobs, hundreds of thousands of which have gone elsewhere, with very little chance of returning. Textiles, shoes, furniture making, electronics, software development, accounting and bookkeeping functions, product design, and on and on. Do we really want to sacrifice another industry that involves an estimated 3,000,000 jobs, plus the uncountable trickle down effect, at a time when our economy has already been severely weakened and compromised by a bunch of greedy crooks in the financial business, that in part has precipitated the automobile slowdown, and the resulting credit crunch. We can come up with billions of dollars for them, but as has been the case in the past, We don’t support our manufacturing enterprises that add value. It just doesn’t make sense.
I believe it’s time the United States of America draw the proverbial line in the sand and take a stand as a nation to work together to give our auto manufacturers (perhaps not in their current structure) the opportunity to achieve the goal of re-inventing and revolutionizing the new automobile business. Whether it be through a loan, or a combination of a loan combined with tax credits for buyers, we, as a nation must find a way to make it work! If we can accomplish this goal, we can successfully manufacture cars all over the world, and with a strong home base we could actually add more jobs to the industry. What might that, combined with the by-product of what we learn along the way, be worth for our future?
Our moronic leader(s) for the last eight years (thank goodness it’s almost over) never had the courage or foresight to ask Americans to make a sacrifice, as many before him had. Our willingness to make sacrifices for the good of the country has been part of our history, and one of the many things that make America great. If you followed the Presidential campaign at all, you know that our President elect will not make the same mistake. He realizes and understands the value of working together. After all, he was a community organizer, and aren’t we just an oversized community. Just remember back to September 11. 2001 and the feeling we had as a nation as we jointly mourned the nation’s losses, while at the same time celebrating emerging heroes. Remember the people volunteering, coming to New York from all over the country just to be there to lend a hand. One scene that still stands out in my mind and still gives me goose bumps was when people were lining the streets and cheering for the truck drivers as they were removing the debris from the World Trade Center. Felt pretty proud to be American then didn’t we?
The sacrifice, as I see it, is that we need to buy American cars to support our manufacturers. Together or separately, the automobile manufacturers can come up with the greatest plan in the world, but if we don’t support them and buy their cars, no plan will work. If you must buy an import, at least be conscious enough to buy one that is made in America, so we can at least support the companies that provide American jobs. I understand it is difficult because of trade agreements for the government to put in place tariffs, but they cannot regulate our choices. The power and choice to make a difference is ours!
I am nowhere near smart enough to determine if Detroit can survive or effectively compete with the labor cost structure they currently have in place, or some of the other changes they have to make in their dealer networks to save money, but we, the people, can give them the opportunity to find out, if we buy their cars. If they cannot renegotiate with the UAW willingly (I was always taught that half a pie is better than no pie at all) perhaps bankruptcy will be the only alternative but we need to give them that opportunity by buying their cars.
For decades, Americans have had a love affair with their cars, even before the advent of imports, but the reality now is a call to purpose that only we can accomplish together to stem the loss of our manufacturing capabilities. If we can impact and increase sales of American cars by 10%, in America, we can save our industry and give it an opportunity to survive and repay its debt to we the people. In exchange for our support, any recovery plan MUST offer transparency to build credibility for and with customers
The technology is available to track the information from both sides (supply and demand) and make it transparent so we can all understand what is happening and to be proud of the fact that together, we finally said YES WE CAN compete with the rest of the world when it comes to automobile manufacturing.
To follow is an interesting article I found in the
Detroit News.com, and also included are links to the websites for the Big Three. Check them out and see both what they have to offer and what is coming. You’ll find models, pricing, specifications, and the ability to make comparisons with other vehicles. I believe that anyone who is willing to participate in this effort can find a quality car for a fair price without too much of a sacrifice. My fellow citizens, let’s exercise our power and do something good for our future. The choice is ours!
http://www.gm.com/ http://www.ford.com/ http://www.chrysler.com/Also, if you believe that we should save the auto industry please send a note to your
Senators and
Representatives in CongressTo join the cause as our website is being constructed, please send your email address to:
JLadge@gmail.comThis article created on 12/3/2008 is the exclusive property of John Ladge and may not be re-printed without consent of the author.
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