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US Auto Industry – Beyond the US and Beyond Graduate School

Chaos Brings Opportunity — In The Real Graduate Business School

If chaos brings opportunity then current circumstances present a multitude of opportunities in the car business. Undoubtedly, present circumstances represent a set of issues absolutely unforeseen except in a Graduate Business School program. Even there, variables that have brought on the current situation would have represented a set of circumstances that would be almost unimaginable.

An Unimaginable Scenario Even In Business School

government-motorsIf today’s situation were visualized as a raging river that needed to be crossed then the raging waters would include the economy, weak demand, and industry collapse. Players crossing the river represent an intrepid and diverse group and these players are crossng the raging waters right now because either they must or they see opportunity. Some group members chose this pathway and some had no choice but were swept up in the torrent and some did not have any opportunity but to participate or see collapse of a strategic industry in the US, North America and World.

Is It Academic and Historic

Two decades ago the scene was set for a massive business takeoverthat became the story memorialized in  Barbarians at the Gate written by Bryan Burrough and John Helyar describing a massive Wall Street and Industry economic power play.

This masterful work memorialized how financial minds envisioned and executed maneuvers to control huge financial sums and industries and has been called one of the most influential business books of all time — the definitive account of the largest takeover in Wall Street history.   This tomb addressed a facet of business that was totally dominating or crushing depending on which player you study.

Auto Industry Reality Is Not Academic

chrysler-fiatToday’s auto industry reality makes Barbarians seem to be only a prelude to the real business, industry and governmental drama. Reality composed of GM and Chrysler collapse, dealers terminated in a wholesale manner, UAW rethinking just about everything, US Government input to business plans, car lines being shut or sold, key players and groups stepping up to acquire select assets. These circumstances are absolutely beyond Graduate School Business Class 633.

The Real School of Hard Knocks

Current status of the US and World auto manufacturing is absolutely hard ball.  There are massive implications for current Corporate and National priorities around the Globe

Significance of the current situation has implications which go far beyond today’s immediate chaos.  Decisions made in 2009 will very tightly set the course of the Global auto industry tightly for the next five (5) to seven (7) years and set he paradigm for long term future.

Massive changes are going to happen in 2009.  Stating that another way, a hundered years ago was the foundation fr what is in place today.  How far into the future the survivors and new players go remains to be seen.  However, for the next hundred years, or at minimum couple of decades, decisions made in 2009 will play a seminal role in automotive manufacturing dominance.

Ford Vision

February 27, 2009 Auto Manufacturer No Comments

Ford is the Premiere North Americford-logoan Automaker

To say these words almost sounds like shock for many who have followed American and World automotive car business.  However, the simple fact that both GM and Chrysler are at the financial edge and recognize cash flow failure and bankruptcy are real possibilities absolutely moves both companies to a file folder with the title of “Reorganize Business Model”.

Automotive history texts will likely say that Ford Motor Company recognized that its Business Model did not work for the 21st Centry in 2004 and that if effective change was not implemented then Ford was going to fail.  Harsh reality for a company incorporated in 1903 but absolutely true based on money in and money out. … Continue Reading

GM & Chrysler Reorganization Opportunity

February 27, 2009 Auto Manufacturer No Comments

gm-logoNow that they are at the brink of collpse, GM and Chrysler have an opportunity to restructure their businseeses to be successful in the 21st century.

For the past 30 years American “Big 3” automakers have seen their market share drop from 75% to 45% or an average annual loss of 1% per year. Loss of market share and today’s crisis economy have effectively put Ford, GM, and Chrysler in peril. Fortunately, Ford recognized several years ago that it had to restructure to survive and today they are the one automaker not seeking Federal assistance. Ford products coming into the market in 2009 show company vitality and provide strong quality and customer value. … Continue Reading

Random Photos From Automotive Tribune Site

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