A global car market demands globe-spanning brands

G.M. BANKRUPTCY: "In Overhaul, G.M. May Find Solace in Its Far-Flung Units," by Heather Timmons, New York Times, 4 June 2009.

INNOVATION & TECHNOLOGY: "One Ford for The Whole Wide World: America will be the big test for the Fiesta--popular in Asia and Europe--and for Mulally's global game plan," by David Kiley, BusinessWeek, 15 June 2009.

MONEY & INVESTING: "Penske Will Buy, Remake Saturn: Racing Legend/Auto Magnate Will Add Auto Brand and Dealers to Empire," by Sharon Terlep and John D. Stoll, Wall Street Journal, 6-7 June 2009.

First article: what caught my eye was the chart on the jump page that showed GM sells as much in China + Brazil + Britain +Canada + Russia + Germany as it sells in the U.S., and that's just the top 6 after the U.S.

Second article: I think Ford is learning the lessons of Honda and Toyota, meaning you become a truly global integrated enterprise that markets the same basic products globally. A good sign, in my mind.

Also happy to see Penske get Saturn. Everything but the manufacturing at first, with the notion that it becomes a new kind of car company that outsources the production.

When you think of this, it's brilliant. Saturn owners are legendary in their satisfaction and devotion, and it's primarily the great service--from what I've heard. Car is good, but many cars are good. Dealerships matter. So why not buy the truly branded part (the everything else, if you will), and then just outsource the most unchangeable part--the manufacturing?

I am beginning to think these bankruptcies will be bitter but good medicine.

No great knowledge, just an impression from the stories.

Comments

[Rick]

A lot of folks have been saying for quite a while, that we need to let them go bankrupt to fix the problem. Now perhpas we will see. It would have been nice not to spend the money in the first place though.

[joe Michels]

The most bitter is the fact that I'm going to be an unwilling owner of GM. If I wanted to own GM after a bankruptcy I would buy stock in the new company.

I believe that Saturn will be the only successful brand going forward, or until the government gets out of the car business.

I also believe the Penske purchase is proof that a regular (non government controlled bankruptcy) would have worked out just fine for the "auto industry". It will be proven that government ownership of the "good parts of GM" will be bad for the "auto industry".

Note, I put "auto industry" in quotes because GM and Chrysler are not the auto industry just poorly run companies. The auto industry will survive and again thrive with American workers.

[Louis Heberlein]

About two decades ago NIST and industries determined that 75% of end products like autos involved cubic foot size sophisticated parts. So NIST, with DOD support, created a digital managed design and manufacturing software approach. They then negotiated to make the digital format and QC standards an international standard. So outsourcing of established solutions overseas or to more automated solutions was inevitable. Robert Reich and others with insight indicated US should concentrate on high value customization for global customers, and on solving, testing, and demonstrating the next generation of high value parts/products, with global partners for global follow-on volume production of the new items. The ignorance of business, media, and much of academic world on this innovation is still widespread. I'm hoping 'Obama got it.' Three previous presidents used NIST and DOD to develop, test, and employ the new methods ... but they remain a stealth industrial policy effort.

[large]

Lessee, Circuit City filed for Chap. 11 back in November and closed their stores by the first of the year . . Thursday morning I received in my eMail an electronic ad for "Circuit City" using their logos, format and mailing list.

In other words, they have reorganized and resumed business, on their own, no government assistance required. This is where both Chrysler and GM should have gone, rather than being propped up by federal money for the sake of the unions and politics . .