PDA

View Full Version : A Modern Parable.



Mark #2
12-02-2008, 09:11 PM
From my College advisor
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.

They both build automobiles.

Ford folks are still scratching their heads, and collecting bonuses... and
now Ford Executives want us, the United States Taxpayer, to loan them 25
Billion Dollars,. to help them create that same series of mistakes all
over again.... Or, a 25 Billion reward for exercising total stupidity and
morbid indifference to the product requirements and desires of the
American automobile customer.

Let them take a chapter 11 like every other business who screws up their
products and marketplace.

IF THIS WEREN'T SO TRUE IT MIGHT BE FUNNY

98Cobra
12-03-2008, 02:03 AM
That joke pops up every few years, with different names on it.

Actually, Ford is the automaker in the best position right now of the Three. To me there are two reasons the domestics are in the position they are in:

1) Unions - build low quality cars, make a fortune to do it (counting bennies)
2) Lending practices - same thing that the banks did for houses they did for cars, and now its all dried up so getting a loan is difficult
3) Officially in a recession now, people wont spend as easily on a big ticket item
4) Sudden fuel price spike hurt domestics more due to lower MPG across the product line

Oh, wait thats four. :)

L8 APEX
12-03-2008, 09:45 AM
The big three have thrived off large gas guzzlers, SUV's, trucks, fast cars etc.. Yes they make a lot of 30mpg crap wagons but the profit is not in those cars it is in the trucks. Ford makes about $15 grand profit on diesel trucks, they make about 1,500 profit on a Focus... They cannot turn a profit just selling little cars. This is similar for GM and Chrysler. Without the Silverado, Sierra and Ram they will all go out of business. The only up side is Americans are the only ones with 3/4 and 1 ton diesel trucks. The half ton market has a lot of pressure from Toyota and Nissan. Even though the Tundra and Titan v8's get worse MPG than GM. To survive they are going to have to shift over to making profit on small quality cars. Unfortunately that market is flooded by solid foreign competition.

98Cobra
12-03-2008, 10:35 AM
Well, thats just it. The Japanese cornered the market on quality sedans with decent mpg. They didnt have to sell a ton of volume to be profitable because they dont have union burdens, and they had the market pretty much to themselves. They messed up big trying to invade the truck/SUV market right as it was about to bust.

L8 APEX
12-03-2008, 11:58 PM
Funny to see the UAW squirming and offering up concessions to save the big three some money in labor costs. The UAW says it will stop paying laid off workers 95% of their salaries and renegotiate wages... WTF, who gets laid off and draws 95% of their pay??? No wonder these union workers want their plants closed down. They sit at home and draw 95% of their check..
It will be interesting to see what the Feds do tomorrow. I hope they tell them to shove it and lay in their beds.

dboat
12-04-2008, 08:41 AM
Funny to see the UAW squirming and offering up concessions to save the big three some money in labor costs. The UAW says it will stop paying laid off workers 95% of their salaries and renegotiate wages... WTF, who gets laid off and draws 95% of their pay??? No wonder these union workers want their plants closed down. They sit at home and draw 95% of their check..
It will be interesting to see what the Feds do tomorrow. I hope they tell them to shove it and lay in their beds.

not only do they get paid that much, they get the pay for up to TWO years after they are laid off...

Dana

Ohmsby
12-04-2008, 09:12 AM
Unfortunately they are going to get the money... I just hope it comes with some stipulations

L8 APEX
12-04-2008, 09:35 AM
Fox4 showed a guy buying a new truck at Lynn Smith Gm yesterday. He was the only buyer on the lot and got the royal treatment. The manager said he has laid off 15 employees this year.

L8 APEX
12-04-2008, 10:51 PM
You see the big three show up drving hybrids and the Chevy Volt today...

BC Lightning
12-04-2008, 11:02 PM
Unfortunately they are going to get the money... I just hope it comes with some stipulations

Ford already said they don't need it, but want it as a line of credit

tiffo60
12-05-2008, 10:03 AM
Ford already said they don't need it, but want it as a line of credit

actually they said they had another years worth of capitol, enough to get them through 09, but I know they are not going to turn it around in a year so I bet they use it..

toddwarren
12-05-2008, 10:37 AM
The unions need to get thrown out, and I will guarantee you most employess of the UAW will work for what the BMW and Toyota employees are making.
You also have to look at the retirement plans and Health insurance benefits the UAW employees get, it is a great deal if you are them, but a total rip off at how much cost it adds to each car.