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Re: bashing Detroit
One has to marvel, though, at the creativity of an industry that has lost
more than half of its customer base over the last 2 decades and yet shows
record profits.It can't go on.
Is it really a surprise that MB would start replacing the Detroit execs at
Chrysler. Marketing ever larger monster SUV's is just one example of
Detroit's priorities. GM and Chrysler build 3 different cars and sell them
under 15 different names. Evidently, the intelligence of Detroit's
customers cannot be insulted.
Amazingly, Detroit continues trying to convince us of the value of things
like FWD instead of admitting that it's simply another cost cutting
measure. When there's change at Daytona, Indianapolis, Monza, MB or BMW,
people may start to believe Detroit's on to something. In the meanwhile,
one more person from Detroit tells me how good FWD is in snow, I think I'll
retch.
The fact that most of the big 3 decisions are made in Michigan, one of the
more isolated subcultures, is a huge problem for the industry. David
Halberstam suggested the problem with Michigan is that the people there
believe the west coast is Lake Michigan and the east coast is Lake Huron.
They cannot see beyond their own borders and as the world becomes their
marketplace, this continues to be a liability.
More than anything, it appears that Detroit designs cars for midwesterners
and has conceded that the rest of us will probably look elsewhere. Its no
wonder the MB employees have trouble agreeing with a company that believes
a car is just another home appliance? To their credit, at least Chrysler
stockholders had the sense to merge with a company that seems to care about
cars.
A few years ago an investment firm said the best cure for GM would be to
get rid of the current management, move the headquarters to Atlanta and run
the entire company with fewer than 50 people. They may have had something
as many of their problems appear to stem from inbreeding and an
unmanageable bureaucracy. This same idea applies in differing degrees to
the whole American auto industry.
The Ford's are convinced they know best, but check the record of their
football team since they acquired it. And how many billions did they spend
to buy unprofitable Jaguar? It was interesting to hear that the Mercury
division moved their headquarters to the west coast recently as it's about
time someone figured out this might be necessary. I wonder if it's really
true? GM appeared to have made a step in that direction when they started
Saturn, but it was BS as the decision makers appear to have stayed in
Detroit.