Philip Maddocks: To cut costs, automakers plan to outsource 40 years of bad ideas

[OhioChick]

Posted Dec 04, 2008 @ 11:47 AM

The Detroit automakers, hoping for billions in federal aid, announced they plan to outsource all the bad ideas they have put into place over the last 40 years to a company in India. Executives at the U.S. companies said the move could save the automakers tens of billions of dollars while allowing them to hold onto the very concepts that have become the cornerstones of their businesses.

"To try to separate our businesses from their bad business practices is impossible," said Ford’s chief executive, Alan R. Mulally. "For the well-being of our economy, it is essential that we save the American automakers. And for the well-being of the automakers, it is essential that we save their bad ideas — beginning with my $21 million salary."

"This is no time to try pretend we are something we are not, and make no mistake about it, we are not well-run companies," added G.M.’s embattled chairman, Rick Wagoner. "Inefficiency, shortsightedness, and a lack of imagination may be no substitute for a viable business plan, but they are the most identifiable features of our vehicle line. It has taken us years to build a disloyal customer base based on these principles. If you take them away from us, you will alienate that customer base and jeopardize our core business."

In a statement submitted to the Senate Banking Committee, Ford said its faulty ideas were more fully developed and "sustainable" than those at the other two Detroit automakers but warned that its fortunes were closely tied to the poor planning of its two rivals, General Motors and Chrysler.

More: http://www.norwichbulletin.com/opinions/columnists/x1720679426/Phil-Maddocks-To-cut-costs-automakers-plan-to-outsource-40-years-of-bad-ideas