Monday, November 17, 2008

In Cars



Following up on the overwhelmingly popular success of the driftglass plan to save the country from being Eated by Toxic Mortgages comes the sequel: How to save the U.S. Auto Industry.

In our last exciting episode we learned that trying to fix anything before you figure out exactly how and why it’s broken is, well, stupid.

So, what’s broken about Big Auto?

Well, from inertia to cost-bloat to short-sightedness, there are so many open, visible and suppurating sores available to the Monday morning industrial planner that anyone could pick their favorite poisons, mix them up like ingredients at a do-it-yourself Bloody Mary bar, and probably write a pretty vivid description of what the corpse looks like.

But for all of that, the fundamental cause of the failure of U.S. auto industry is simple: Most of the people who run the Big Three gave up making cars years ago.

Or, as an acquaintance of mine in the business once put it: “There isn’t one cocksucker left at GM who can read a motherfucking blueprint anymore.”

Think about it.

Other companies have shown over and over again that whatever the problems with Big Auto may be, they have nothing to do with the price of steel or plastic, or the position of the moon or stars. There is no absence of innovative ideas for how to build safe, efficient cars people actually want to drive. And awesome, spark-throwing robots

are widely available.

Not that many years ago, the Big Three still had had two incredible advantages going for them: they controlled powerful brand names and they were sitting on oceans of cash and talent. But instead of using those tools to build better/faster/cleaner/cheaper, the dirty open secret that every supplier knows is that the Big Three chose instead to slouch down that long, low road to WalMartylvania.

They became, in effect, the mutant kissing-cousins of hedge funds, run not by car guys, but by the same species of people who crashed the financial markets.

Like WalMart, they used their dominant market positions to force their first and second tier suppliers to take on more and more of the hard stuff – research, development, design, etc. – while the people in the home office got more and more obsessed with abusing the tools and techniques of industrial efficiency to wring every cent out of the manufacturing process without ever bothering to notice that the product coming off the assembly linen at the end of that process kinda sucked.

And then, like WalMart, they squeezed those same suppliers for every fucking nickel, threatening them with financial extinction unless they met the corporation’s increasingly rapacious terms, until the whole idea of “profit” became more a function of manipulating those asymmetrical extorter/extortee relationships, and less about building better cars.

There is still a lot of talent locked up inside those behemoths, but if you want to fix Big Auto, first you have to get rid of upper management, and the bigger axe you use the better.

Start with the Chief Executives. Then a few thousand Vice Presidents. Machete the goo all the way down to GM Apologist and spokesdouche, Sean Fucking Hannity.

Second, to step in and straighten the industry out in a hurry you’re going to need a whole lot of competent professionals who love – not like, but love – building cars, and who are capable of getting the nearly-impossible done hurry-up-quick. Which would be kind of a worrisomely tall order were it not for the serendipitous fact that 20 brutal years of Big Three corporate Darwinism have already weeded the weak and slow out from the ranks of their first and second tier suppliers, leaving behind an army of incredibly hardy, agile survivors who are already used to working miracles and pulling the auto industry’s collective ass out of the fire on time and under budget.

20 comments:

zombie rotten mcdonald said...

Brilliant.

My wife worked for one of GM's subsidiaries for 7 years, and everything you say is right on. Also of note, many of the best and most experienced within the company took buyouts and moved to the suppliers, leveraging that knowledge to work for someone who knew what they were doing.

This did have the effect of leaving the Peter Principle test cases behind within GM.

It should also be noted that the motherfuckers running the auto companies are very closely related to the fuching ferrets that have been busily destroying the music industry.

Heard a great term to describe these guys this weekend, defining 'accountant' as a mashup of 'counting mutant'

Seriously, did anyone see a "B" Ark crashing into America about thirty years ago?

tech98 said...

Bravo. This makes the most sense of all the solemn blog posts I've read on saving the Big 3.
It seems like the arrogant, greedy, bullying, stupid MBA douchebags running the Big 3 would have been right at home in the Bush Assministration.

Anonymous said...

Mr. driftglass, you type up that resume of yours and head right on down to transition HQ, they need you there. And if they can't see the truth and humor in the blog (have you ever posted anything online... what handles have you posted under... ?) then we are well and truly fucked.

schmidlap said...

OT: love the new look, and the writing sparkles as ever.

But: the yellow text is a bitch for those of us using black-on-white readers like google reader, etc. I know you're messing with the template, thought you might appreciate some f/b.

Charles Perez said...

Dead on! Slash and burn through the upper echelons like Rambo through a cheap studio Vietnamese forest set. A little forced Darwinism, if you will.

Read a great article somewhere (NYT?) that GM should hire Steve Jobs - let that MF loose for a year and they'll be selling iCars by the boatload. Could work...

jp said...

I almost always agree with you Drifty..but I am having a problem with saving the auto industry. Transforming it may be the better idea. The days of Happy Motoring are behind us, and making cars for stock point a to point b is not going to be happening anyway in the not too distant future. This country needs transportation: light rail, freight class rail, water transport and urban/inter urban public transportation. Transforming the auto industry to a transportation industry..a streamlined American industrial power (with all of the great ideas in your post ) would be a good and necessary thing.

There is an interesting story about Goodyear taking down inter urban transportation (mainly the dismantling of the streetcar system) in the 1930's..maybe it's time for a policy to do the opposite.

Anonymous said...

What about all the upper-level management guys who have contracts, sometimes even guaranteeing them bonuses not dependent on their performances. If GM / Ford / Chrysler fires them, they'll SUE and get even more money!

Won't somebody think of the CHILDREN?!

Anonymous said...

Should be performance not performances above.

Anonymous said...

THe CEO of GM is on the record stating that global warming is a hoax and they'll keep on building SUV's instead of those whimpy little cars; the guy is a calcified moron who can't see either the present or the future.

If that Tesla Cars start-up has built a functional, even fast & fun electric car with a little over $100 million in investor capital, how come Detroit can't do the same? Oh, right, they never wanted to.

Stephen A said...

How to do things right:
Engineers rule at Honda

Anonymous said...

Hi DG, I may be the lone dissenting voice, but I don't like the new look :(

The dark teal color makes me feel a little anxious and depressed. It's just plain ominous looking. I'm not sure if others find it so, but reading dark text on light background is effortless while white on dark seems to strain the eye.

I always look forward to your posts, but I dislike the new color scheme. I'm sorry!

WereBear said...

Hi Driftglass,

Well, I like it. Modern looking, uses less power, and, may I add, just seems more YOU!

And yes, I said the answer was "Off with their head!" The head management, that is. They are the ones making the decisions, not the poor souls who actually get fired when they screw up.

But yours is more eloquent.

Anonymous said...

DriftAss, that's some brilliant shit. I am glad you are deploying your analytical skills more broadly than just in politics.

BTW, the new template sucks my dick. Please don't go light-text-on-dark-background!

Anonymous said...

Talk about yer deja vu, baby cakes!

My family -- immediate cracked gene pool and extended family morons -- have been in the U.S. Auto Industry since the 1940s.

They spit all over me when I bought a Volkswagon Beetle -- USED -- in 1969. By the time the first OPEC Oil Embargo rolled around in the mid-1970s, they were running around with shock 'n dreadlocks hair saying The Problem is that people like me are not buying American gas pig cars.

And they are at it again. Fracking Morons who have not been able to see the energy and consumer-demand writing on ALL the WALLS for over 30 years.

No bailouts till you all take your heads outta your asses. Kay? That goes for you, too, uncles, brothers, aunts, sisters and other Clueless in America types.

Anonymous said...

Drift: The problem with the entire automobile industry is that every tom,dick and harry country or corporation can now produce autos.The proliferation of these producers worldwide has caused a glut and decline of profit margins.So, no matter how GM or Ford dress up the pig,it is going to remain a pig.The days when GM and Ford could slap on their nameplate on the fender and charge an extra 2 to 3000 dollars are gone.

I think the auto is becoming more and more of a commodity so there is no money to be made in the business.And this is even before India and China enter the picture.

I think that our auto workers need to face the truth that the old days of glory are gone,never to come back.

Myrtle June said...

Detroit has been dead for years ... along with the American made autos. So much of the parts they use are not American made and yet there's the segment of the population that will always buy their product. why? It's crap. OTOH, the Pontiac Vibe is really a Toyota.... it was some joint venture with Toyota and its pretty much the same car except shit doesn't fall off the Toyota.

The auto industry seems like just one big welfare program anyway and has for quite some time.

Great stuff as always Driftglass. I also agree with the poster above who said we need to be transforming not bailing out. That'd be stupid. Same with the financial people. Change the language: Here's your transformation allowance for your new transformation board made up of people who need money to feed their family. Those are the budget people. Those are the people who make things work. Oh and the transformation allowance cancels all contracts for the asses that brung ya. Byeeeee.

Let the tranformation begin. :-|

(aaaaaaaachooooooooo. ahhchoo. choo. sniffle. wipe. groan.)

Send likker....zzzzzzz

jurassicpork said...

打っ掛ける. That's Bukkake, Republican-style, and we're seeing a massive facialing of the American autoworker courtesy of the GOP and their standing in the way of an auto industry bailout.

tech98 said...

Quoted from Tom Tomorrow, very apropos to the topic:

It’s important for the government to bail out GM, so that GM can continue as one of the main sponsors of talk radio diatribes against government and government bailouts. It reminds me of a small irony from last summer that I never got around to blogging: at the same time all the radio talkers were mocking Obama for suggesting that we keep our tires inflated, one of the carmakers was pushing a brand new innovation — self-monitoring tires which inform you when they need inflating. So you’d go directly from a rant about the idiocy of thinking you can improve mileage by keeping your tires properly inflated to a commercial about how you can definitely improve mileage by keeping your tires properly inflated. In one absolutely classic moment I caught on my car radio late one night, Laura Ingraham was the ranter — and was also the person who read the immediately subsequent commercial copy. -- Tom Tomorrow

Anonymous said...

Mr. Glass,
I've thunk you have hit a real touchy spot here. This conversation needs to be continued.
The cocksuckers who can't read blueprints was real good.
What a fucked up education system we have, and why did we let it happen?
Thinking finacial people were 'smart' started about the mid 80's. The words "trickle down" still drives me crazy!
Who could believe that shit? Beside the patricians.

Anonymous said...

I just watched "Who Killed the Electric Car" last night, and even though I have friends and family in the Detroit area, my final feeling is fuck the big 3, cut off the upper layers and dig up the technology they had WORKING with the EV1 and start producing it, NOW. GM is claiming it's savior, the Volt, will try to get 60 miles per charge; the later EV1's got 100 miles, and the Tesla car gets 300; the technology is there, but the big 3 and the oil companies don't want it to work. Time for a revolution folks...