Why We Are Where we Are in Global Competition (Ford, GM vs Toyota)

Snowboarda42

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My Dad sent me this, I thought I'd share it:

A Japanese company ( Toyota ) and an American company (General 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 8 people steering and 1 person 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, 3 area steering superintendents and 1 assistant superintendent steering manager. They also implemented a new performance system that would give the 1 person 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 rower. There was discussion of getting new paddles, canoes and other equipment, extra vacation days for practices and bonuses.

The next year the Japanese won by two miles.

Humiliated, the American management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year's racing team was out-sourced to India .

Sadly, the End.

Sad, but oh so true! 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.
IF THIS WASN'T SO SAD IT MIGHT BE FUNNY!
 

Zorabot

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Thankfully somebody not blaming the workers for making a living wage.
I am particularly happy about the slow death by a million cuts the domestic auto industry has been subjected too and can see the benefit of not having any domestic manufacturing. It just goes to show how bad of a country America is.
GO JAPAN !!!
 

DaleM

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78mustang said:
Toyota sucks and anyone supporting them should be ashamed!
Not me. Mine is going on 250,000 miles and the AC will give you frost bite.
 

earl lee

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DaleM said:
Not me. Mine is going on 250,000 miles and the AC will give you frost bite.

So true, my father had a 92 corolla at about 200k that was still running strong. He sold it when the head gasket went, but the new owner put a gasket on it and is still driving it, cold ac too.

I think they make the best bulletproof 4 bangers.
 

97WHITEVENOM

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I love all things American... but the way things are going now... we should feel lucky they found the river
 

BlackBolt9

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I find it funny there is still a huge debate between the quality of foreign and domestic vehicles. I would bet a significant amount of foreign cars are built by machines that are designed and built in America. Most of the automotive production machines I design are for foreign cars, some are still for GM though.
 

DaleM

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SNCBOOM said:
The rower must have been union
No, he would never have been fired even after being found incompetent. Probably promoted to supervisor.
 

BOOGIE MAN

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IMO, one of the main reason's the american car companies are losing their ass is the way the unions cause them to spend so much money on salaries for plant workers. The way I understand it is that the foreign companies can spend so much less money on actually making the car therefore being able to sell it for less and still make a bigger profit
 

CalcVictim

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Boogie Man said:
IMO, one of the main reason's the american car companies are losing their ass is the way the unions cause them to spend so much money on salaries for plant workers. The way I understand it is that the foreign companies can spend so much less money on actually making the car therefore being able to sell it for less and still make a bigger profit
Why are workers in foreign companies that operate on US soil not unionised while GM, and Ford's workers are?
 

BOOGIE MAN

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CalcVictim said:
Why are workers in foreign companies that operate on US soil not unionised while GM, and Ford's workers are?

and there goes my theory. Didn't think about that MAJOR factor
 
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Zorabot said:
Thankfully somebody not blaming the workers for making a living wage.
I am particularly happy about the slow death by a million cuts the domestic auto industry has been subjected too and can see the benefit of not having any domestic manufacturing. It just goes to show how bad of a country America is.
GO JAPAN !!!

Bitter much?
 

BlackBolt9

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CalcVictim said:
Why are workers in foreign companies that operate on US soil not unionised while GM, and Ford's workers are?

Thats a good question, but I have been told that the Toyota plants in the U.S. are NOT union shops.

And from what I understand the part of union demands that hurt Gm and Ford more than actual pay is the retirement benefits they are paying out. And it has been getting worse as the baby boomers are getting to the point of retirement. The newer foreign car company owned plants would not have that problem as they have not been open long enough to begin paying out much of the retirement fund (that is if they offer a form of retirement more than just a 401K or something similar, which I doubt they do).
 

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