How GM Works !!

dq409

Well Known Member
Supporting Member 3
There is a great deal of truth in this:





Japanese company (Toyota ) and an American company (General 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 8 people steering and 1
person 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, 3 area steering
superintendents and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 1
person 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 rower. There was discussion of getting
new paddles, canoes and other equipment, extra vacation days for
practices, and bonuses.

The next year the Japanese won by two miles.

Humiliated, the American management laid off the rower for poor
performance, halted development of a new canoe, sold the paddles, and
canceled all capital investments for new equipment. The money saved
was distributed to the Senior Executives as bonuses and the next
year's racing team was out-sourced to India.

Sad, but oh so true! But consider this:
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!
 

oldskydog

Well Known Member
Supporting Member 10
Dammit DQ now cut that out! That's the second time I totally agree with you.
:eek: :grumble:
:roll
 

Phil Reed

Well Seasoned Member
Supporting Member 10
a whole can of worms!!

There is a great deal of truth in this:

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!


Jim..........what you say is true but there is a lot left unsaid.

I read recently, thay GM has a little over $4000 PER NEW VEHICLE in past employee benefits, future employee benefits and medical insurance coverage!! That is a tremendous lug to have to carry.

Toyota comes in and builds new plants, hires US workers without any of the overhead of all the past history of costs. They will have them someday just like the US companies but in the meantime, all the American automakers will be lost.

I think it was the Toyota ads that said "build in America BY Americans". Ford responded with an ad that said Ford "was built in America FOR Americans". Anyway, as I remember it..........it was something like that. In other words, Ford helped build America while the imports were just using America.

I've never bought a foreign car and don't intend to!!!
 

petepedlar

Well Known Member
Supporting Member 3
I wouldn't buy an import either but I think they are a better vehicle in a lot of cases............................ and gladly pay the extra $4000 for the American car .............. but it would sure be nice if the American car was as good as the import.......... even for the extra $4000
 

models916

Well Known Member
Supporting Member 7
And that's the way it was.

Been buying Chevy since the 60's. Just couldn't get a fair price on anything I liked this time around for my Wife's ride. Ended up with a Saturn Vue. She is happy with the car, the price was good, the quality so far is quite good. (Chevy Ecotec engine)
 

tripowerguy

Well Known Member
Supporting Member 3
We have bought two cars that my wife fell in love with, one a Ford and the other a Chrysler product. Both after we got them home and looked them over were made in Mexico. I agree with Phil that GM and probably Ford have made horrible mistakes when negotitating contracts with the unions. You would think that the unions would see the hand writting on the wall and not kill the goose that laid the golden egg. I am sitting here writting this on a computer that is probably not made in the US and looking at some labels my wife used for her work last night the label says made in Mexico. We say we can't afford to pay Americans their wages, How is that we work longer hours, have shorter vacations and less benefits of industrial nations if we are paid to much? I love what DQ posted because it points out what is wrong with American industry, they give execs bonuses and high salaries whether they improve the company or not. We need more small companies with the owners living in town so they can see the results of their investments. If a company moves it's production overseas It should cost them the same to get the product back in the the US as it cost them to produce it here. WHY ARE WE LETTING CHINA BE OUR MANUFACTURING BASE AND WE FORBID ANY TRADE WITH CUBA BECAUSE IT IS A COMMUNIST COUNTRY?:dunno :cuss Thanks that felt good to get off my chest. Roy
 

Phil Reed

Well Seasoned Member
Supporting Member 10
Way to go Roy.............you won't need to take your blood pressure medicine this morning!!!!
 

bobs409

 
Administrator
There's nothing they make American or foreign that I'd buy anyway. (if I wanted to pay the crazy prices of them that is) I even mute the car commercials on TV!

I'll just keep my oldies. At least I can change my own spark plugs. :roll
 

rstreet

Well Known Member
Supporting Member 17
Phil & DQ & Roy: Excellent points each of you have addressing the various problems with the automotive industry!! Each of you should be your state senators instead of 348/409 admirers:bow :bow :cheers Of course Gm is probably going to see some further decline due to management too quick and knee jerk reactions issuing press and decisions over the Imus issue.
 

dq409

Well Known Member
Supporting Member 3
Phil & DQ & Roy: Of course Gm is probably going to see some further decline due to management too quick and knee jerk reactions issuing press and decisions over the Imus issue.


Didn`t know they made nappy headed cars !!!! :roll :roll :roll
 

1958 delivery

Well Known Member
Supporting Member 2
WHY ARE WE LETTING CHINA BE OUR MANUFACTURING BASE AND WE FORBID ANY TRADE WITH CUBA BECAUSE IT IS A COMMUNIST COUNTRY?:dunno :cuss Thanks that felt good to get off my chest. Roy[/QUOTE]


Good point, let's help Fidel Castro invade China take it over, then the US will ban trade with China! Problem solved.
 

models916

Well Known Member
Supporting Member 7
Fill 'er up

Let's all fill up with Citgo. They just nationalized the oil companies.
 
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