May 14, 2007

It is a sad commentary on our times that Chrysler, once a proud American auto company, will be shortly owned by a private capital company.   I believe it is a reflection of our entire auto industry, once dominate the world over and now in many cases second rate.   What happened to this American industry?  Remember the saying as GM goes so goes the American economy?  Is it now as Toyota goes so goes the American economy? 

While America leads in so many areas of technology and innovation, what happened in the auto industry that got us to this point, and, more importantly, what can be done to get this industry on track?    Many people blame the unions and their contracts which call for significant health care and retirement benefits.   Labor costs reported to be $30 more per hour for an American auto worker then their foreign counterparts reflects these and other costs.  But I can’t believe that with American ingenuity we can’t figure out how to be more productive.   I also can’t believe we can not build superior cars.  I am not suggesting this is easy.   I am suggesting that the Chrysler acquisition might be just what the doctor ordered to shake up this industry in the US and get the “big 3” to really seek dramatic changes in how and what they deliver to the marketplace to compete.


Bizvice:  Business Strategy, Marketing & Entrepreneurship


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