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 pro grams 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-source 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.
Ford folks are still scratching their heads, and collecting bonuses .
Ford and all the other American car makers find themselves in the same position they were right after the first big Gas Crunch of '73. They've found themselves flat footed again with showrooms full of gas guzzlers. They're playing catch up once again with the Japanese who now have fully developed hybrids to offer the public.
How could this have happened again?
It's pretty simple actually and it has less to do with a perceived superiority of the Japanese mind than it has to do with the sleeziness of the heads of the American car companies.
You may recall that in the early 90's Congress was threatening to pass legislation forcing all car makers to have a certain percentage of their fleets to have a much higher mpg rating and also to have road ready alternative powered cars available to the public by the year 2000. So hearings were held on Capitol Hill and all the car makers sent their reps to plead against any binding legislation that would force them to comply. I remember watching this on TV and the car makers cut a deal with Congress that they would voluntarily improve gas consumption and also have alternative powered vehicles offered to the public. They swore they would do this and I can almost see them crossing their hearts as they said this (snicker-snicker-chuckle-chuckle!). GM actually did come out with a really nice little all electric that they leased to a few members of the public in a testing program. Remember those? However after a two year test they called 'em all back in an destroyed them all behind closed doors. Every person who had leased them just raved about them and some even tried to hide them and avoid giving them back.
Ford and Chrysler made only token attempts at this endeavor. Meanwhile, Toyota went ahead with the developement of the Hybrid concept and the first Prius came out in 2000 just as they had promised the American public and Congess. I personally don't know whether Toyota had a higher sense of morality (as in doing what you promise) or whether they actually saw the huge potential that was ahead. It's possible they were just doing what they were told to do and got lucky. None the less, their business stategy has pushed them to the top of the heap. Today the only car you have to get in line for is a Toyota Prius and, just like the Harleys of the last couple decades, if you want one you have to pay extra and get in line (at least for right now) to get one.
Why didn't the heads of the American car companies see the coming oil crunch and the effect it would have on their own companies' futures? Personally I believe it is because their compensation packages are tied to stock prices and their motivation in guiding their ships is very short sighted. All the stock holders were just giggling their butts off when they were selling the high profit SUV's and money invested in future technology like hybrids or whatever just detracted from the look of their balance sheets.
In retrospect the Japanese moves look brilliant to some but I think the heads of the American companies should be thrown out into the streets for their lack of foresight and greed.
Detroit 3 (no longer referred to as the "Big 3") CEO's: Bob Nardelli - nearly killed Home Depot so now he gets to finish Chrysler off. Rick Wagoner - fiddling while GM burns, turn-around plan struggling with Bob Lutz' innovation the only bright spot. Alan Mulally - the only CEO who seems to get it. He started Ford's turn around and move to more fuel efficient cars six months after he took over. Ford, unfortunately, doesn't have the cash to make great strides or hit a home run, but will improve with a few singles and doubles.
I heard that Ford and GM are discussing collaberating on future power system development. This could bring much need cash to Ford as well as the Chevy Volt technology and could help development at GM where Wagoner is cutting new product development staff.
All very true, Wrightturn. The rest of you are right on the money too.
__________________ '73 FX
'85 XLX
'02 FLHTCUI
Read
2 Chron 7:14
Please join me in this prayer daily.
This is my Granddaughter Sky, age 7. Can't walk, talk, or feed herself but look at that smile. Anyone care to complain about their lot in life? Not me![IMG][/IMG]
As the old saying goes, "The only thing constant in life is change." Big changes comin' for the auto industry. We'll see how it pans out. I'm hoping for the best.
Interesting. Things aren't always what they seem, dig a little deeper and it's amazing what you find. Thanks dis8.
Hey, you might as well register rather than be a "guest". You always contribute good info here.
__________________ '73 FX
'85 XLX
'02 FLHTCUI
Read
2 Chron 7:14
Please join me in this prayer daily.
This is my Granddaughter Sky, age 7. Can't walk, talk, or feed herself but look at that smile. Anyone care to complain about their lot in life? Not me![IMG][/IMG]
Interesting. Things aren't always what they seem, dig a little deeper and it's amazing what you find. Thanks dis8.
Hey, you might as well register rather than be a "guest". You always contribute good info here.
Actually, I have been a member here since the beginning. This site is the "new version". I belonged to the previous version of this site as well. When aimag had the great crossover, things weren't so smooth for everyone. Ya gotta love computers......
I experienced a not so smooth landing and am trapped in "forever a guest" mode.
I actually am, right now, in talks with the site admin here to change all of that. I know I am missing out on alot of features y'all have privie to here. Hopefully I won't be a "newbie" after the changes. I have been around for about 3 years or so.
Ford vs Toyota 
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