Comments on: What if Steve Jobs ran Chrysler? http://www.ritholtz.com/blog/2008/12/what-if-steve-jobs-ran-chrysler/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 21 Nov 2009 19:25:27 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: jpo http://www.ritholtz.com/blog/2008/12/what-if-steve-jobs-ran-chrysler/comment-page-2/#comment-132384 jpo Thu, 11 Dec 2008 09:05:11 +0000 http://www.ritholtz.com/blog/?p=12464#comment-132384 BMW already does it. Have a look at http://en.wikipedia.org/wiki/BMW_X3 The X3 also disappointed some BMW purists by not being assembled at a BMW factory; instead, the car's production was outsourced to Magna Steyr, based in Graz, Austria. However, Magna Steyr has won numerous awards for quality and has been the highest rated car assembly factory in Europe. It has also manufactured - amongst others - European market Chrysler/Jeep products, the 4-Matic Mercedes E Class derivatives, and even Saab 9-3 convertibles. BMW already does it. Have a look at http://en.wikipedia.org/wiki/BMW_X3

The X3 also disappointed some BMW purists by not being assembled at a BMW factory; instead, the car’s production was outsourced to Magna Steyr, based in Graz, Austria. However, Magna Steyr has won numerous awards for quality and has been the highest rated car assembly factory in Europe. It has also manufactured – amongst others – European market Chrysler/Jeep products, the 4-Matic Mercedes E Class derivatives, and even Saab 9-3 convertibles.

]]> By: zero529 http://www.ritholtz.com/blog/2008/12/what-if-steve-jobs-ran-chrysler/comment-page-2/#comment-132371 zero529 Thu, 11 Dec 2008 04:42:38 +0000 http://www.ritholtz.com/blog/?p=12464#comment-132371 As someone else pointed out, outsourcing manufacturing doesn't necessarily mean outsourcing it overseas. In fact, if Chrysler got rid of its North American manufactuing arm, those floor workers and managers wouldn't suddenly disappear -- they (and their skills and experience) would still be there. You could essentially have a turnkey contract manufacturing plant, assuming (big assumption) that someone was willing to put up the funds to make it happen. Another crazy idea (putting practicality & labor agreements aside for the moment) would be to have competition among the existing manufacturing facilities within the company. No, I know, there's no way to really make that work, but maybe the idea could lead to something that actually would work. As someone else pointed out, outsourcing manufacturing doesn’t necessarily mean outsourcing it overseas. In fact, if Chrysler got rid of its North American manufactuing arm, those floor workers and managers wouldn’t suddenly disappear — they (and their skills and experience) would still be there. You could essentially have a turnkey contract manufacturing plant, assuming (big assumption) that someone was willing to put up the funds to make it happen.

Another crazy idea (putting practicality & labor agreements aside for the moment) would be to have competition among the existing manufacturing facilities within the company. No, I know, there’s no way to really make that work, but maybe the idea could lead to something that actually would work.

]]> By: belfiore http://www.ritholtz.com/blog/2008/12/what-if-steve-jobs-ran-chrysler/comment-page-2/#comment-132369 belfiore Thu, 11 Dec 2008 04:38:48 +0000 http://www.ritholtz.com/blog/?p=12464#comment-132369 The idea of Steve Jobs running Chrysler cuts to the quick of the ills plaguing the American automotive industry - most notably, a decades-long lack of innovation in their products and product development processes. The systemic changes required of GM, Chrysler, and Ford will not come overnight. Sinking billions of dollars in support of a dead innovation process will guarantee failure. Making cuts and "leaning" the manufacturing line will not address the fact that the (cash strapped) customers of the future have no incentive to buy a new car unless such a car delivers exceptional value in a way that addresses the customer's own definition of value. Consider the following series of three articles as just one of many blueprints the auto industry needs to consider if it is going to survive. Propping up failed business models, or forcing a politically favored solution without regard to the larger problems that need to be solved will only lead to billions of tax dollars going up in smoke, and even more painful displacement of millions of workers. http://andromeda-30.blogspot.com/2008/11/how-your-car-might-re-invent-more-than.html http://andromeda-30.blogspot.com/2008/11/car-of-tomorrow-driven-through-triz.html http://andromeda-30.blogspot.com/2008/11/park-to-future.html The idea of Steve Jobs running Chrysler cuts to the quick of the ills plaguing the American automotive industry – most notably, a decades-long lack of innovation in their products and product development processes.

The systemic changes required of GM, Chrysler, and Ford will not come overnight. Sinking billions of dollars in support of a dead innovation process will guarantee failure. Making cuts and “leaning” the manufacturing line will not address the fact that the (cash strapped) customers of the future have no incentive to buy a new car unless such a car delivers exceptional value in a way that addresses the customer’s own definition of value.

Consider the following series of three articles as just one of many blueprints the auto industry needs to consider if it is going to survive. Propping up failed business models, or forcing a politically favored solution without regard to the larger problems that need to be solved will only lead to billions of tax dollars going up in smoke, and even more painful displacement of millions of workers.

http://andromeda-30.blogspot.com/2008/11/how-your-car-might-re-invent-more-than.html
http://andromeda-30.blogspot.com/2008/11/car-of-tomorrow-driven-through-triz.html
http://andromeda-30.blogspot.com/2008/11/park-to-future.html

]]> By: Micah http://www.ritholtz.com/blog/2008/12/what-if-steve-jobs-ran-chrysler/comment-page-2/#comment-132329 Micah Thu, 11 Dec 2008 02:12:58 +0000 http://www.ritholtz.com/blog/?p=12464#comment-132329 Wow... A lot of comments on this subject. On the whole I think Cringely misses the point. We are looking at apples and oranges (no pun intended) here. The skills needed do not necessarily translate from one industry to another. Moxy is not a substitute for intelligence. I live in New Mexico and we have recently experienced an aircraft manufacturer (Eclipse Aviation) going under in a horrible, bloody way. The (former) CEO was a software billionaire and didn't understand the market, the process or even the technology. It is sad, but there are no "Universal Managers" that can fix all problems and even someone like Jobs can fail and if he fails sometime in the future it will be BIG because of the vast sums of money involved. Differences do matter. On another note: Outsourcing all your manufacturing could easily lead a company like Chrysler into ruin. They will have nothing to really call their own. For awhile it will help their bottom-line but in my opinion they will quickly and completely make themselves irrelevant to their market. (Yes, someone is sure to point out that Chrysler is already irrelevant... Point taken) The car industry is not my area of expertise but if they want to succeed it will not be by outsourcing their ability to make cars. --Micah Wow… A lot of comments on this subject.

On the whole I think Cringely misses the point. We are looking at apples and oranges (no pun intended) here. The skills needed do not necessarily translate from one industry to another. Moxy is not a substitute for intelligence. I live in New Mexico and we have recently experienced an aircraft manufacturer (Eclipse Aviation) going under in a horrible, bloody way. The (former) CEO was a software billionaire and didn’t understand the market, the process or even the technology. It is sad, but there are no “Universal Managers” that can fix all problems and even someone like Jobs can fail and if he fails sometime in the future it will be BIG because of the vast sums of money involved.

Differences do matter.

On another note: Outsourcing all your manufacturing could easily lead a company like Chrysler into ruin. They will have nothing to really call their own. For awhile it will help their bottom-line but in my opinion they will quickly and completely make themselves irrelevant to their market. (Yes, someone is sure to point out that Chrysler is already irrelevant… Point taken)

The car industry is not my area of expertise but if they want to succeed it will not be by outsourcing their ability to make cars.

–Micah

]]> By: AGG http://www.ritholtz.com/blog/2008/12/what-if-steve-jobs-ran-chrysler/comment-page-2/#comment-132319 AGG Thu, 11 Dec 2008 01:31:13 +0000 http://www.ritholtz.com/blog/?p=12464#comment-132319 It's all here if anybody really wants the truth and the solution: http://www.depression2.tv/d2/node/747 It’s all here if anybody really wants the truth and the solution:
http://www.depression2.tv/d2/node/747

]]> By: Jojo99 http://www.ritholtz.com/blog/2008/12/what-if-steve-jobs-ran-chrysler/comment-page-2/#comment-132316 Jojo99 Thu, 11 Dec 2008 01:26:52 +0000 http://www.ritholtz.com/blog/?p=12464#comment-132316 Steve Jobs is already occupied. I have good design taste (sez me), so hire me as the CEO of Chrysler! I promise to right the ship. And if not, hey, it can't be any worse than it is now, right? They're nearly broke now, so there are only 2 ways to go - broke or up :) Steve Jobs is already occupied. I have good design taste (sez me), so hire me as the CEO of Chrysler! I promise to right the ship. And if not, hey, it can’t be any worse than it is now, right? They’re nearly broke now, so there are only 2 ways to go – broke or up :)

]]> By: Mike in Nola http://www.ritholtz.com/blog/2008/12/what-if-steve-jobs-ran-chrysler/comment-page-2/#comment-132315 Mike in Nola Thu, 11 Dec 2008 01:20:47 +0000 http://www.ritholtz.com/blog/?p=12464#comment-132315 Barry: You forgot the part about the cars costing 50% more because of the Jobs' cachet. Barry:

You forgot the part about the cars costing 50% more because of the Jobs’ cachet.

]]> By: AGG http://www.ritholtz.com/blog/2008/12/what-if-steve-jobs-ran-chrysler/comment-page-2/#comment-132310 AGG Thu, 11 Dec 2008 00:58:12 +0000 http://www.ritholtz.com/blog/?p=12464#comment-132310 Aristotle said that you can't seek happiness because happiness is a byproduct of a life of virtue. Whether you agree or not, perhaps we should look at the car market in a similar light. The profitable sale of cars is a byproduct of good paying jobs in a healthy economy. This is not about qualityor overhead in pension costs or the "evil" unions. The foreign auto makers will soon be in deep doodoo as well. But these and many other ideas will be forthcoming from the people with degrees in marketing because they were erroneosly taught that good marketing can generate sales. You need a healthy economic infrastructure for that premise to function and even then it is corroboration, not causation. You want a great idea? Here's a winner for the New York Times: If a person agrees to a ten year suscription at $365 a year, the customer gets a new computer, high speed (or dial up if no high speed in area) internet and a printer. Every renewal at ten years brings a new computer. All subscriptions include $400 worth of advertising per year. Business rates are slightly higher. The only catch is that if you want a hard copy, you have to print it out on your own paper. This is a green business model. It provides long term operating funds for the paper and would stabilize the stock prices. I know, it's too practical and customer friendly to appeal to present management. So let them fail. Aristotle said that you can’t seek happiness because happiness is a byproduct of a life of virtue. Whether you agree or not, perhaps we should look at the car market in a similar light. The profitable sale of cars is a byproduct of good paying jobs in a healthy economy.
This is not about qualityor overhead in pension costs or the “evil” unions. The foreign auto makers will soon be in deep doodoo as well. But these and many other ideas will be forthcoming from the people with degrees in marketing because they were erroneosly taught that good marketing can generate sales. You need a healthy economic infrastructure for that premise to function and even then it is corroboration, not causation.
You want a great idea? Here’s a winner for the New York Times:
If a person agrees to a ten year suscription at $365 a year, the customer gets a new computer, high speed (or dial up if no high speed in area) internet and a printer. Every renewal at ten years brings a new computer. All subscriptions include $400 worth of advertising per year. Business rates are slightly higher. The only catch is that if you want a hard copy, you have to print it out on your own paper. This is a green business model. It provides long term operating funds for the paper and would stabilize the stock prices.
I know, it’s too practical and customer friendly to appeal to present management. So let them fail.

]]> By: me http://www.ritholtz.com/blog/2008/12/what-if-steve-jobs-ran-chrysler/comment-page-2/#comment-132301 me Thu, 11 Dec 2008 00:03:38 +0000 http://www.ritholtz.com/blog/?p=12464#comment-132301 " If they succeed it will likely result in another major blow to the U.S. economy." How so? Cerebus will get their money and the employees will still get fired. No little people win in this deal. ” If they succeed it will likely result in another major blow to the U.S. economy.”

How so? Cerebus will get their money and the employees will still get fired. No little people win in this deal.

]]> By: Pat G. http://www.ritholtz.com/blog/2008/12/what-if-steve-jobs-ran-chrysler/comment-page-2/#comment-132300 Pat G. Thu, 11 Dec 2008 00:00:29 +0000 http://www.ritholtz.com/blog/?p=12464#comment-132300 I don't know about Jobs running it but anyone with half a brain and a heartbeat could do a better job than that brain-dead asshole, Nardelli. I don’t know about Jobs running it but anyone with half a brain and a heartbeat could do a better job than that brain-dead asshole, Nardelli.

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