A few days ago Chrysler presented their five-year-plan to journalists. The associated new ads have gotten most of the attention, because they, well, could be better. But other aspects of the plan are more worthy of attention: Best coverage of the Chrysler’s Five-year Plan. It’s worth noting that the Fiat and Chrysler lines have very little overlap, so each company… More →
Category: OEM Futures
OEM Futures
Why Toyota is not the new GM
They automotive press is increasingly fond of claiming that Toyota is going down the same path GM went down. But words are cheap. Did Toyota overexpand their production capacity just in time for a severe market downturn? Absolutely. But a single major strategic miscue does not inevitably lead to long-term decline. The real thing to pay attention to is not… More →
A new GM? Here’s how to prove it.
I keep reading over and over, most recently in today’s Automotive News, that GM needs to tell the American public that it “is not the company that screwed them in 1978.” The claim: the cars that turned millions of people away from GM were decades ago, and that GM is unfairly being punished for the sins of long-retired executives and… More →
GM’s Chapter 11: Failure to Collaborate
Following GM’s Chapter 11 bankruptcy filing today, the Internet has been flooded with explanations of GM’s decline. Here’s mine… Nearly everything wrong with GM can be traced to one source: GM’s senior management has long acted as if it should make all important decisions, and that everyone else involved–middle management, workers, suppliers, dealers–should simply execute their orders. This essentially tossed… More →
Does GM want to get rid of Opel?
The first time I heard that GM was going to split off its European operations, I was shocked. Opel has been part of GM for 90 years. Over the past decade they’ve worked hard to create a globally-integrated organization, and GME has provided the platforms for GM’s compact and midsize cars. How could they so easily get rid of such… More →
Cadillac to move downmarket?
It doesn’t seem that long ago that General Motors was pouring billions of dollars into Cadillac in a bid to make it a world-class luxury car brand that might once again deserve to call itself “standard of the world.” Now, with GM on the verge of bankruptcy, all signs point to a full scale retreat. Assuming GM pulls through, I… More →
Killing Pontiac–a superficial non-solution
Word is that GM will announce the demise of Pontiac next week. Not really a surprise for anyone who’s been reading the writing on the wall. But nevertheless a sign that those in charge of GM’s destiny are more interested in appearing to be doing something than in actually addressing the core weaknesses of the car manufacturer. Why is so… More →
Washington’s dangerous fixation on fuel economy
The Presidential Task Force on Autos released it’s New Path to Viability for GM and Chrysler. The administration has concluded that GM can come back strong after a restructuring, but that Chrysler must link up with someone else, specificially Fiat. So far, so good. The problem: “The new GM will have a significant focus on developing high fuel-efficiency cars that… More →
Wagoner resigns from GM; what should the new CEO do?
Just announced: due to pressure from the Obama administration, GM CEO Rick Wagoner will soon resign. Personally, I don’t fault Wagoner, at least not more than I’d fault any conventionally-minded CEO. The problem wasn’t Wagoner per se, but the typical American way of doing business: decisions from the top when those with the most knowledge are much lower in the… More →
Consumer Reports’ results misinterpreted to Chrysler’s detriment
Operating TrueDelta, it would be in my interest to assert that Consumer Reports’ results are incorrect. But I’ve never made this argument, nor do I believe that their results are generally incorrect. Instead, I’ve repeatedly found that people’s interpretations of Consumer Reports’ results are often incorrect. A current example could have serious consquences… In a recent Detroit Free Press article,… More →