PDA

View Full Version : Parable for US AUTOMAKERS


Jim@BAWS
11-26-2008, 12:09 PM
Oh how true it is!!.
I am a GM Owner, always have been. Supporting the US Economy
Even GM and DODGE could use a WAKEUP CALL THEMSELVES



A Modern Parable.

A Japanese company ( Toyota ) and an American company (Ford Motors)
decided to have a canoe race on the Missouri River . Both teams
practiced long and hard to reach their peak performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate
the reason for the crushing defeat. A management team made up of senior
management was formed to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people rowing and 1 person
steering, while the American team had 7 people steering and 2 people
rowing.

Feeling a deeper study was in order, American management hired a
consulting company and paid them a large amount of money for a second
opinion.

They advised, of course, that too many people were steering the boat,
while not enough people were rowing.

Not sure of how to utilize that information, but wanting to prevent
another loss to the Japanese, the rowing team's management structure was
totally reorganized to 4 steering supervisors, 2 area steering
superintendents and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 2
people rowing the boat greater incentive to work harder. It was called
the 'Rowing Team Quality First Program,' with meetings, dinners and free
pens for the rowers. There was discussion of getting new paddles, canoes
and other equipment, extra vacation days for practices and bonuses. The
pension program was trimmed to 'equal the competition' and some of the
resultant savings were channeled into morale-boosting programs and
teamwork posters.

The next year the Japanese won by two miles.

Humiliated, the American management laid off one rower, halted
development of a new canoe, sold all the paddles, and canceled all
capital investments for new equipment. The money saved was distributed
to the Senior Executives as bonuses.

The next year, try as he might, the lone designated rower was unable to
even finish the race (having no paddles,) so he was laid off for
unacceptable performance, all canoe equipment was sold and the next
year's racing team was out-sourced to India .

Sadly, the End.

Here's something else to think about: Ford has spent the last thirty
years moving all its factories out of the US , claiming they can't make
money paying American wages.

TOYOTA has spent the last thirty years building more than a dozen plants
inside the US . The last quarter's results:

TOYOTA makes 4 billion in profits while Ford racked up 9 billion in
losses.

Ford folks are still scratching their heads, and collecting bonuses...

IF THIS WEREN'T SO TRUE IT MIGHT BE FUNNY

sdesmond
11-26-2008, 12:26 PM
Oh how true it is!!.
I am a GM Owner, always have been. Supporting the US Economy
Even GM and DODGE could use a WAKEUP CALL THEMSELVES



A Modern Parable.

A Japanese company ( Toyota ) and an American company (Ford Motors)
decided to have a canoe race on the Missouri River . Both teams
practiced long and hard to reach their peak performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate
the reason for the crushing defeat. A management team made up of senior
management was formed to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people rowing and 1 person
steering, while the American team had 7 people steering and 2 people
rowing.

Feeling a deeper study was in order, American management hired a
consulting company and paid them a large amount of money for a second
opinion.

They advised, of course, that too many people were steering the boat,
while not enough people were rowing.

Not sure of how to utilize that information, but wanting to prevent
another loss to the Japanese, the rowing team's management structure was
totally reorganized to 4 steering supervisors, 2 area steering
superintendents and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 2
people rowing the boat greater incentive to work harder. It was called
the 'Rowing Team Quality First Program,' with meetings, dinners and free
pens for the rowers. There was discussion of getting new paddles, canoes
and other equipment, extra vacation days for practices and bonuses. The
pension program was trimmed to 'equal the competition' and some of the
resultant savings were channeled into morale-boosting programs and
teamwork posters.

The next year the Japanese won by two miles.

Humiliated, the American management laid off one rower, halted
development of a new canoe, sold all the paddles, and canceled all
capital investments for new equipment. The money saved was distributed
to the Senior Executives as bonuses.

The next year, try as he might, the lone designated rower was unable to
even finish the race (having no paddles,) so he was laid off for
unacceptable performance, all canoe equipment was sold and the next
year's racing team was out-sourced to India .

Sadly, the End.

Here's something else to think about: Ford has spent the last thirty
years moving all its factories out of the US , claiming they can't make
money paying American wages.

TOYOTA has spent the last thirty years building more than a dozen plants
inside the US . The last quarter's results:

TOYOTA makes 4 billion in profits while Ford racked up 9 billion in
losses.

Ford folks are still scratching their heads, and collecting bonuses...

IF THIS WEREN'T SO TRUE IT MIGHT BE FUNNY




Thats exactly right.... I hope those executives have fun flying around in their corprate jets, having meetings in spa resorts racking up $250k bills, and collecting millions of $$$ in bonuses while the american auto industry is going down the toilet and many many americans are losing their jobs and their families suffering. It seems like now this is the american way...

Mag_Red
11-26-2008, 01:06 PM
Thats exactly right.... I hope those executives have fun flying around in their corprate jets, having meetings in spa resorts racking up $250k bills, and collecting millions of $$$ in bonuses while the american auto industry is going down the toilet and many many americans are losing their jobs and their families suffering. It seems like now this is the american way...
Why should they worry????? The US government will bail them out:rolleyes: Let em fail....that's my opinion

captain planet
11-26-2008, 01:13 PM
This is the same thing that is happening at a lot of large corporations and it has become the norm. They oursource the jobs claiming they can't afford to do business in the US. The reality is, if the fat-cats at the top weren't so worried about how much money they were going to make, they could afford to stay inside the US to manufacture.

Mixed bag of feelings on this one. I don't want them to fail for obvious reasons, but inside I want them to crumble like a house of cards..they deserve it. Boot out the guys at the top for new blood that wants to create a business that can help the US become a giant in the auto industry again and build cars that make sense for 2008 not 1978.

Until then, my next car will probably be a VW Jetta TDI, and my next truck will probably be a Honda Ridgeline.

Nice post Jim.

brucemac
11-26-2008, 01:21 PM
tough times and quite a bummer. good read. here's the saddest part of all of it:

Here's something else to think about: Ford has spent the last thirty
years moving all its factories out of the US , claiming they can't make
money paying American wages.

TOYOTA has spent the last thirty years building more than a dozen plants
inside the US . The last quarter's results:

TOYOTA makes 4 billion in profits while Ford racked up 9 billion in
losses.

Ford folks are still scratching their heads, and collecting bonuses...

i own a GMC

TMCNo1
11-26-2008, 01:23 PM
Why should they worry????? The US government will bail them out:rolleyes: Let em fail....that's my opinion


Just say no,
42461

Jorski
11-27-2008, 10:16 AM
The problems are not with the quality of the American worker.

The US automakers can't make money building cars in their own country because of the deals they have made with the unions. Toyota doesn't have those problems.

And before you skewer me, I do have a Chevrolet Tahoe ;-)

coz
11-27-2008, 10:46 AM
Canoe's, Bailouts?
http://www.newciv.org/pic/nl/artpic/10/548/9_24_The_Ape_Who_Learned_to_Paddle_a_Canoe_225_pj2 0.jpg
Does make ya wonder who's driving the sinking ship, Good point!

bigmac
11-27-2008, 10:46 AM
20 years ago I lived on the Mesabi Iron Range. Over that 5 year period, I watched as the entire steel industry priced itself out of the market with ongoing concessions to the United Steel Workers of America. The first sign of trouble that they saw was when it finally became clear that the steel industry could import taconite from Brazil cheaper than they could mine it and process it in their own domestic plants. About 2 years later, it became clear to them that the US construction industry could import finished steel from Japan cheaper than the US steelmakers could make it here.

Just as the steel industry spiraled in 20 years ago, we're seeing the US auto industry doing the same thing and for the same reasons.

All part of the general sense of entitlement that many Americans feel. Problem is, the good times that fostered that sense of entitlement were all built on a house of cards. And that house just collapsed. What we are witnessing these days is the passage of the USA from its seat being the world's dominant player to being just another country.

jeverett
11-27-2008, 11:48 AM
This isn't just a Ford problem! GM and Chrystler are in the same boat, along with the rest of big corporate America. The reason that American auto makers are getting their A$$'s kicked by everyone else is 2 reasons. 1 corporate greed. and 2. Union's. Number one can be solved by not bailing them out. And number 2 can be solved by not bailing them out. Unions used to serve a purpose in the us when there was corporate abuse of employees and such, now all someone has to do is publish that stuff in the press and on the internet and game over. Where are all the great American CEO's like Jack Welch, Warren Buffet, and Iaccoca SP? Yeah they are spending their Billion's of income but they also made their companies Billions as well while managing their debt, and telling the Unions they couldn't have everything they want.

Jim@BAWS
11-27-2008, 12:08 PM
This isn't just a Ford problem! GM and Chrystler are in the same boat, along with the rest of big corporate America. .

I agree...I have owned 15 + New GM products over the last 25 years.
They make an AWESOME product. I just purchased the NEW Hybrid Yukon
with a 6.0 Litre motor. WHAT A TRUCK. No one else even makes anything close.

The UAW should take a TON of blame. They alone have run the big three into the
ground. There is a place in the workforce for unions. 28% of a vehicles cost goes
to retirement/union related items. 28% The union members should invest in
some of there own retirement.

I hope they make it...especially GM

Happy Thanksgiving

Jim@BAWS

babymoore3
11-27-2008, 06:40 PM
I am probably aiming to get shot at here but my two cents... a little history on myself...

Our family business is a union company (Father started/retired, my brother runs it and I went for further education)..
All our vehicles are American and always have been (debating on the future - more on this later)
I now work at a large internation corporation which by God's blessing is doing well...

America is failing because the American dream is no longer being chased. Most "Americans" are trapped by materialism, entitlement and lack of responsibility. We don't know what a budget is, we don't bother to be a part of innovation or the children (the future of America). As society we no longer value family, gaining or continuing education, saying "no" to things that we do not need or "needing" to keep up with the Jones.
"Americans" want to be spoon fed (human nature) and get paid for the position that manages the risk of business failure without doing it. The American dream was to have freedom. To take a risk and be rewarded by that risk or not. This means if you fail you were rewarded with knowledge not money.
So now that everyone believes I am off my rocker, please take a moment to think about it. This country was founded on people taking risk for a better life (crossing the Atlantic, fighting native people, new diseases, etc). Did these people not suffer immensely? Did they not lose loved ones, friends? Let's love neighbors, family, extended family, our significant other. Let's take time to budget and understand our financial risk. Let's spend time to think about what happens to our immediate family if we were to die. Let's care for our significant other as if they are important in our lives.

So whose fault is it?

Who is responsible for:
- finances: me
- health: me
- family: me
- education: me
- faith: me
- government actions: me
- attitude: me
- emotions: me

Let's get engaged and quit asking for others to fix the problem! Has that worked so far?

Instead of discussing what the "top" and the "bottom" have done to collapse a company let's discuss what we as the people from top to bottom can do to keep the industry, families and government that makes America great - let's work together to keep it here and improve it.

With tough times here, how about going out to a local charity and volunteering. How many parents complain about the level of education but do not take the time to help education? Take a day off for them instead of yourself and help in the classroom? How many teachers would refuse that? Why not have a night a month that you focus on how you (and/or your family) can cut back in expenses and do something for someone in need? Why not invite that neighbor that you don't know over for dinner (how can you help them with their struggles). Who knows you may find that they will help you in yours!

It all starts with freedom to do so, effort to start doing it, understanding you will grow from any experience but it may not be financially....

Matthew 7:7-12 NIV (because grace has been given to us, please give it to those you deal with)

7"Ask and it will be given to you; seek and you will find; knock and the door will be opened to you. 8For everyone who asks receives; he who seeks finds; and to him who knocks, the door will be opened.

9"Which of you, if his son asks for bread, will give him a stone? 10Or if he asks for a fish, will give him a snake? 11If you, then, though you are evil, know how to give good gifts to your children, how much more will your Father in heaven give good gifts to those who ask him! 12So in everything, do to others what you would have them do to you, for this sums up the Law and the Prophets.

Conviction hurts but in the end we are all better if someone holds us accountable...
Kevin

Jim@BAWS
11-27-2008, 07:42 PM
I am probably aiming to get shot at here but my two cents... a little history on myself...


ALL THE STUFF INBETWEEN

Conviction hurts but in the end we are all better if someone holds us accountable...
Kevin

AMEN BROTHER

Jim@BAWS

Workin' 4 Toys
12-01-2008, 11:06 PM
I hope they make it...
Me too.............

Chief
12-02-2008, 04:31 AM
While unions are part of the problem: IMO Unions helped build the middle class back in the day.

trickskier
12-02-2008, 06:24 AM
While unions are part of the problem: IMO Unions helped build the middle class back in the day.

And bankrupted a lot of companies while doing so.............8p

wakeX2wake
12-02-2008, 10:55 AM
While unions are part of the problem: IMO Unions helped build the middle class back in the day.

agreed but have long since over served their purpose... good employees will go to good employers and that's all there is to it... employers who treat their employees well and have good benefits and solid compensation will get the better employees who will make a better product which will sell more products which in turn will benefit all involved... employers who do not will struggle to be successful... these are rules of modern business... when unions were created there were no loans or government assistance the unions were needed to manage the management... today... people have greater access to funds to provide for their families in hard times and don't have to be employed to eat necessarily like back in the day... labor unions have over served their purpose in a sense that people who make decisions in these large companies have to be able to do what is best for their company to be profitable b/c their company being profitable directly benefits them and having a 3rd party (union reps) mandate what an employer can or can't do w/ his employees when they don't share the vision of the management team of the company or have all the necessary information to make decisions is just ludicrous from a common sense standpoint

BIGBADBLUE
12-02-2008, 11:26 AM
I was born and raised in Michigan and my family is mostly union. The blame must be placed on both the company AND the unions.

I laughed at Ron Gettelfinger when he stated the UAW is now competative. Yea right!!! Their benefits, retiree benefits, wages, job banks and work rules are out of control. They may have given up some in the past negotiations but they are still not even close to the true market of their workers. It is just the facts.

The companies allowed all this to happen. If they treated their workers with more respect and had better products the union would not be needed at all. Do BMW, Mercedes, Toyota or Honda have unions? No and they have tries many times to unionize these sites. They have a fiar wage, fair benefits and are treated fairly.

The best thing that could happen is that we do not bail out the Big 3 and make them reorganize. It is sad and scary but it is needed.

Just my 2 cents

dcjm6602
12-02-2008, 12:08 PM
babymoore3, you are soo correct.
I haved worked for Lexus and Toyota for 6yrs and for the most part love it. That being said Take my opinion for what its worth.
The biggest reason for current problems with the big 3 is due to crappy cars. Yes they have improved in recent years but all those customers that had bad experiance are driving imports and as long as they are happy with the vehicle and customer service they will continue to drive them.
Recently Toyota shut down production of the Tundra for 3months due to slow sales and excessive inventory. Although you did not hear it in the media They did not implament massive layoffs and those plants. The workforce was maintained. How much due you suppose they could have saved if they didn't have to pay all those workers for that time and how much would it have cost them in turnover and product quality. Due you suppose those employees may be alittle happier and work alittle harder for a company that will spend alittle more to keep employee moral up.
Take a look at the most succesful businesses in history and i'm sure they all had one thing in common, treating their employees right, even if it may cost them more to due so.

David

p.s. Please join me in praying for wisdom and conviction for our elected officals, even if you disagree with them.

Z-man
12-02-2008, 12:30 PM
I'm agreeing with most comments here, but lets not be to quick to jump on the Toyota bandwagon.

I heard a commet this morning on the local radio that talked about what each of the car companies gave back to the American people after 911. 10 million for each of the big 3 and a letter of condolences from Toyota and the rest of the foreign companies.

It was stated that Toyota makes 4 billion in profits... where do you think 98% of that money goes.... back to Japan. Although they are assemlbing the cars here, where do you think the majority of the parts to make those cars come from? Yes Japan

wakeX2wake
12-02-2008, 12:47 PM
I'm agreeing with most comments here, but lets not be to quick to jump on the Toyota bandwagon.

I heard a commet this morning on the local radio that talked about what each of the car companies gave back to the American people after 911. 10 million for each of the big 3 and a letter of condolences from Toyota and the rest of the foreign companies.

It was stated that Toyota makes 4 billion in profits... where do you think 98% of that money goes.... back to Japan. Although they are assemlbing the cars here, where do you think the majority of the parts to make those cars come from? Yes Japan

not true... companies that support toyota are building facilities here and employing american workers... North American Lighting (i worked there for a short time) opened a facility here just last year to supply the american toyota plants w/ lights...

and no 98% of the money does not go back to Japan... unlike the US companies... when the Japanese make money they turn and re-invest it in what they're doing they don't take huge paydays like GM Ford and Chrysler upper management... that could be why the "foreign" car companies produce a better product... you can't be serious if you think the ford fusion or the chevy malibu are in the same class as the camry or maxima... MUCH better products b/c of money spent on product development... the new tundra smashes other trucks in its class as well

while "american" companies are "cutting costs" and shipping all operations to canada and mexico so they can pad their over stuffed pockets the "foreign" companies are here building plants and imporving processes and developing products living for a fair days work for a fair days pay

a little secret... the reason japanese manufacturing is the giant it is is b/c of a group of Industrial Engineers led by Dr William Edwards Deming who brought his own priciples and those brought to him by Walter Shewart which based manufacturing on process control and flexibility vs sheer volume (the henry ford way)... both of these mens ideas and teachings were blown off by the american companies b/c as henry ford was famous for stating... "everyone in america can afford a model T... as long as its black"... held here... toyota can probably afford to keep people at work b/c they plan and build to a plan... US companies are famous for going full bore until they can't push any more out the door then shutting the doors until they have a large running room again...

BIGBADBLUE
12-02-2008, 01:22 PM
The biggest thing that bothers me in this whole situation is that NO ONE at the big 3 are making "Market Wages" and this needs to change. I laugh at my buddies when they say that a company paid pension is every Americans right. These are white collar engineers. We, Americans, have grown to expect and not earn what we get. The UAW and Sr Mgmt need to get real on wages and benefits and then start build some solid cars that the US market wants.

PacMan89
12-02-2008, 04:11 PM
Whats sad is that the vehicle with the highest percent of american made parts you can buy in the U.S. is now a Subaru. I work for Gm and the percentages of parts from the U.S. is like a reality check. Looking at a window sticker makes you want to walk away. And it shows in quality of the vehicles. We have had 8 Gm 5.3 v8's come in for the same problem leaking head gaskets in one week. Gm knows these parts are defective but do they change them... NO!!! Were putting the same old S*!TY Parts on. Im not trying to bash Gm. I drive a ford and there no better. Why should anyone spend the money they spend on these vehicles to have problems. My brother in law bought a Hyundai. He drives 250 miles per day. 189K miles later he has replaced a window motor. Thats other than regular tune ups oil changes ECT. Show me a one of the big three that can manage that. Im only 19 I was going to be mechanic and thats what im going to school for, but my plans have changed due to this problem. Everyweek we hear of one more tech being layed off. I was the last hired so im going to be the first to go. Ive been trying for 4 months to get into toyota, lexus, honda,hyundia ect. But now its more or less loking into a 4 year college after tech school.If this world didnt revolve around money this wouldnt be an issue but no people are even killing another to save 15 dollars on a dvd player at walmart the day after thanks giving. Thats disgusting.

My two cents, Phil

BIGBADBLUE
12-02-2008, 05:27 PM
WOW ... GM needs $4B just to make it to December 31st. I say bankruptcy and reorganize the entire business and get it right.

http://www.freep.com/article/20081202/BUSINESS01/81202068

Sodar
12-02-2008, 05:28 PM
Big Three want more money than originally asked for... (http://money.cnn.com/2008/12/02/news/companies/automakers_plans/index.htm?postversion=2008120217)

Sodar
12-02-2008, 05:30 PM
Find this amazing too: http://www.cnn.com/2008/POLITICS/12/02/big.three.bailout.plans/index.html?eref=rss_politics&iref=polticker

Especially this part:

"Ford Motor Company said the salary of its CEO, Alan Mulally, would be cut to $1 a year if Ford actually borrowed money from the government. When Mulally appeared before the House Financial Services Committee last month, he said he would not agree to a pay cut."

BIGBADBLUE
12-02-2008, 05:40 PM
Arrogance!!!

Driving to DC is a joke. By the way ... they could fly to DC cheaper on Southwest - $133 roundtrip if they would have booked it last week. Maybe they should spend their companies money like it was their own.

ChicagoX55
12-02-2008, 05:42 PM
there are actually a ton of ceo's with $1 salaries, but then they get like 10 million dollar bonuses

BIGBADBLUE
12-02-2008, 05:50 PM
Chrysler needs $7B this month ...

http://www.freep.com/article/20081202/BUSINESS01/81202082

BIGBADBLUE
12-02-2008, 05:56 PM
I will tell ya, this is really sad and very bad news for our economy. Either way Congress decides there will be ripples through the economy in every state.

http://www.freep.com/article/20081202/BUSINESS01/81202088

coz
12-02-2008, 06:05 PM
Chrysler needs $7B this month ...

http://www.freep.com/article/20081202/BUSINESS01/81202082

WASHINGTON General Motors Corp. said Tuesday it needs $12 billion in government loans to keep operating, telling Congress in a bluntly worded report that its collapse could have "severe, long-term consequences to the U.S. economy."

http://news.yahoo.com/s/ap/autos_gm_plan;_ylt=AjfOrelBQka1sgYkUFgJOrKs0NUE

dcjm6602
12-02-2008, 06:55 PM
The "big three" need to be allowed to fail. It is a direct result of mis managment that they are in this situation. Don't take this wrong, I would not wish bankruptcy my worst enemy but if it will take that much money to make it through the year how much will they need for next year. IMO the only reason the CEOs are asking for a handout is to save their jobs. They all have made millions in the past several years while running the companies into the ground. If they are allowed to fail don't let the media scare you. They will file for chapter11 and reorganize without the current management hopefully, and if they are willing to change the faulty business model they may be a profitable company in the future.
The fact that they think the government is required to "bail the out" makes me sick. The nation is in debt to the third generation printing more money will not fix the problem.

BIGBADBLUE
12-02-2008, 07:03 PM
The "big three" need to be allowed to fail. It is a direct result of mis managment that they are in this situation.

The fact that they think the government is required to "bail the out" makes me sick. The nation is in debt to the third generation printing more money will not fix the problem.

Well said!!