Chrysler isn't Chrysler anymore

[Tom Geiger]

Dan you are absolutely correct. I've always worked in the pharmaceutical industry and with the buy outs and downsizing I know a lot of people who have literally fallen off the truck. People who were well situated in jobs that traditionally they would have retired from, booted out due to circumstances beyond their control. One large pharma specializes in buying their competitors, keeping the products and dissolving that company, with all the employees being laid off. Right now I know a senior IT manager who is currently driving for an ambulance service for $10 an hour. Last time I took my dog to the vet the receptionist was a lady I knew, who had been a vice president's assistant. She was working part time at the vet and part time for a bookstore. Best she could manage to land after two years. Another friend of mine was a senior person, laid off in a bank merger. He was out of work for three years. In my job search it wasn't uncommon to be networking with educated and valuable people who had been out of work a year or two. These folks were living off their savings, cashing 401Ks and otherwise draining their assets. This will become a big national issue as this generation retires.

[Ace-Garageguy]

There is a flaw in the logic that American workers have priced themselves out of manufacturing.

Most "import" cars for the US market have plants here in the US, Toyota, Honda, Nissan, Mitsubishi, Hyundai, VW, BMW, Mercedes all build cars in the US with American workers. In fact Chrysler hasn't been one of the big 3 for quite some time, being overtaken by Honda and Toyota for cars built in the US years ago. Toyota is now the 3rd largest "domestic" car maker in the US with Chrysler and Honda neck in neck for 4th place (they keep flip flopping position between 4 and 5).

You can put a lot of the blame for US carmakers problems squarely on management and investors making poor decisions.

Again, absolutely positively 100% correct.

I highlighted Arron's irrefutable logic that backs this up, and puts paid to the concepts that it's impossible to manufacture anything cost-effectively in the US anymore, and that everything MUST be made offshore to be profitable.

It's time business analysts face these self-evident truths, and stop accepting the old tired excuses.

Edited January 2, 2015 by Ace-Garageguy

[charlie8575]

It's time business analysts face these self-evident truths, and stop accepting the old tired excuses.

So very true, Bill.

I have a copy of Bob Lutz's new book Car Guys Versus Bean-Counters on order from my local B&N, and I'll be using that as an "unauthorized" co-text for my upcoming MG 632 class at UMASS-Amherst, "Statistical Decision Making," which is supposed to extol the virtues of numbers, while Lutz takes a lot of the numbers and flops them on their fanny.

In addition to this, we need to have policies that make it foolish to stop selling our intellectual and production seed corn, as you so correctly and wisely pointed out, instead of encouraging their sale to foreign entities, and often at very unfavorable terms.

Dan, Aaron, and Tom- excellent points all, and very, very well articulated. We can be cost-effective if we have an effective and relevant education system, sensible economic policies, laws and regulations that aren't driven by fear-mongering, questionable science and political gamesmanship, and unions and managers who both understand true value of labor, product and the opinions of the consumer.

Charlie Larkin

[Tom Geiger]

So very true, Bill.

I have a copy of Bob Lutz's new book Car Guys Versus Bean-Counters on order from my local B&N, and I'll be using that as an "unauthorized" co-text for my upcoming MG 632 class at UMASS-Amherst, "Statistical Decision Making," which is supposed to extol the virtues of numbers, while Lutz takes a lot of the numbers and flops them on their fanny.

I didn't know Lutz had a new book. I will have to get it since I love his philosophies. In his book, "Guts" he told the story about how they saved Chrysler by challenging all the old thinking. One story was how they brought the Viper to market. Originally created by Chrysler as an exercise in cutting down the time of the development curve, they took one look at it and decided to actually produce it. A group of Chinese investors had come in for a meeting and were very concerned. They wanted to see the research studies, and all the data that led to the decision to actually sell this odd vehicle. There was none. It was all a seat of the pants gut decision. The Japanese, who live and die by extensive research and studies, were aghast! Lutz was worried that they were going to pull back on financing when the head guy took him aside privately. But what he asked, "How can I get one of the red cars?"

[sjordan2]

I don't have the numbers, but I do know that down South here, foreign carmakers get major tax breaks and huge infrastructure freebies like roads, utility discounts, etc, to attract their business.

[Tom Geiger]

I don't have the numbers, but I do know that down South here, foreign carmakers get major tax breaks and huge infrastructure freebies like roads, utility discounts, etc, to attract their business.

States do that for any large business. It creates jobs and stimulates the economy in that area. When I worked for a small pharmaceutical that was looking to build a new headquarters, we got courted by three states.

[John Goschke]

As a worker in a dying American industry (U.S. Steel) when this movie was released (1976) this dark scene rang true then – and though the list of corporations and currencies have changed somewhat it rings even more true today, when the forces of Wall Street hold even more sway over what is supposed to be "our" government, more money flows to the 1%, and there aren't enough jobs at all the Wal-Marts and McDonalds in the U.S. to support an ever-shrinking middle class (never mind the poor)...

To paraphrase... "There is no 'Chrysler'"

[charlie8575]

An excellent selection, John. And very appropriate.

Someday, I will watch that movie in its entirety.

Charlie Larkin

[bobthehobbyguy]

As a worker in a dying American industry (U.S. Steel) when this movie was released (1976) this dark scene rang true then – and though the list of corporations and currencies have changed somewhat it rings even more true today, when the forces of Wall Street hold even more sway over what is supposed to be "our" government, more money flows to the 1%, and there aren't enough jobs at all the Wal-Marts and McDonalds in the U.S. to support an ever-shrinking middle class (never mind the poor)...

Its not just the auto industry that's gone into the crapper. I knew we were in trouble when Ronald Reagan said we were going to become a service related country. If walmart and the fast food restaurant could outsource their jobs they would.

[Ace-Garageguy]

... I knew we were in trouble when Ronald Reagan said we were going to become a service related country...

England has much the same problem. Many Brits regularly make jokes about the factories and industries and exports they USED to have.

I recall one British economist warning of impending economic doom many years ago, saying something to the effect of "essentially, we'll all be taking in each other's laundry".