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Opinion - USA - It Takes Many Arrows To Kill An Elephant
NEW YORK,USA -Forbes, by Jerry Flint -29 Nov 2005: -- You see, the art of running an auto business is not about killing cars or shutting plants or demanding that partmakers chop prices. Anyone can do that. The art is in designing and producing vehicles that people really want or need--vehicles that consumers "gotta have," and that they are willing to pay a good price to get... Companies don't downsize themselves to success, this it's an admission that things are bad and that they aren't going to be what they used to be. What's happening now with General Motors and Ford Motor may be necessary, but it doesn't guarantee turnarounds... If downsizing doesn't quickly show results, it may lead to management changes, because it's sign of failure. As such, I would give GM's current management no more than a year to produce... Of course, all of Detroit's problems--the invasion of the foreign companies, the legacy costs of pensions and heath care, the wages that dwarf the foreign competition, the tendency of the media and public to vilify big companies--doesn't excuse management for its failures. In particular, I say that the financial men who have run GM for decades did not understand the car market, they didn't respect the vehicles or the customers, and they were interested only in maintaining their power. They worried about the cost of everything but understood the value of nothing...
posted by Unknown @ 1:20 PM
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