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November 17, 2008
What Is Wrong With Detroit?
Here is a look at why the Detroit auto industry is going down in flames. I'm a huge fan of the US auto industry. I'm one of the last people on my street who still buys American cars (Pontiac). But I'm extremely concerned. And given what's been going on, I am surprised at the engineering priorities in Detroit. I had the privilege last week of serving as a judge for the annual Society of Plastics Engineers Automotive Innovation competition. Unlike some design competitions, this one is a very big deal, and has been around a long time. Top engineering managers (mostly from the Detroit area) show what they consider to be their most important plastic designs in new production models. Winners are announced at a huge banquet (Nov. 20 this year) and the top brass show up because of the high quality of the SPE competition. It's truly the Oscars for automotive plastics.Let me see. 445,000 pounds is about 222 tons. That is not a very big deal. And of course that amount assumes a certain sales number for the vehicles the plastic parts will be used in. So given the huge sales drop Detroit is currently experiencing the number is no doubt optimistic. One thing Detroit is pretty good at developing concept cars. Research vehicles full of innovations. What they are not good at is turning those ideas into products. There is a lot of "we've always done it this way" in American auto manufacturing. And yet our government wants to dump $25 billion into this failed culture? I think a better idea is to let them fail. The resources could then be redeployed to companies that actually want to produce break through vehicles. Cross Posted at Power and Control posted by Simon on 11.17.08 at 01:27 AM
Comments
I'm not sure the Design News writer has identified the problem. Apparently he thinks GM's crisis can be solved with a "General Motors Loves the Environment" ad campaign. What they need is a car people want to buy at a price they're willing to pay. Five interior designers to two environmental designers strikes me as just fine. tim maguire · November 17, 2008 11:00 AM GM factory worker wage: $78/hour ... and how much did the UAW donate to the Dems this year? Ben-David · November 17, 2008 01:19 PM
It's a piece of cake. However, designing a circuit to do that without significantly decreasing the bulb lifetime, and without adding more cost to the vehicle than the customer is willing to bear--now that took 3 years. The concept itself was obvious enough, mostly it involved getting such a thing designed in silicon and into mass production such that the chip cost didn't significantly affect vehicle system controller price. It's easy to say "just do it", and yes there's a lot of Dilbert-itis, but there's also some real difficulties that have gotten in the way. Most of them have to do with the "what the market will bear" end of things. That's the curse of the Information Age--things that seem easy in concept, but are difficult when you put the pedal to the economic metal, so to speak. Neil · November 17, 2008 03:23 PM The idea that resources will then flow to companies that want to build innovative cars is a mistake. The purpose of bankruptcy is to shed obligations that cannot be met and save what can be saved. Neither GM or Ford will vanish with bankruptcy. They would become much smaller and emerge with some prospect of returning to profit. Their creditors, suppliers, and contracted labor - mostly in the UAW - would suffer. But they will suffer even more if matters continue as they are. Of course if the government is to keep them in business despite losses then it would be nice to identify the cost as a surtax on the income tax forms. Perhaps $30B/year paid by $100M filers. Sounds like $300 per return. But the rich would pay it. Never mind! K · November 17, 2008 05:28 PM I've driven GM and Ford products since 1998 and 1991. I'll continue driving that car and pickup until the wheels fall off :-) Consumers like me don't help the auto industry at all, so my opinion is worth diddly here. Except... if I have to pay for the automakers to 'exist' I would like to have a new car in return. Maybe they shouldn't make them so good? Donna B. · November 17, 2008 07:14 PM @Neil -- Somewhere between "three years" and "just do it" lies a reasonable time period. I don't know this for certain, but I would strongly doubt it would take engineers at Toyota or Honda (or even a laggard like Nissan) three frickin' years to engineer something so basic as daytime running lights. (And if it did, they wouldn't trumpet the slowness in a marketing campaign!) American cars are better designed, better engineered, and better built than they were 20 years ago. However, they still do seem to lag technologically behind the leading-edge Japanese companies. They just can't get innovations to the market very quickly. Is it because of the obscene differential in labor costs, that they can't bring innovation to market until it's cost effective? Could be. Is it because Detroit is focused on the mass market and is afraid to have a product designed to appeal, even initially, to a niche market? Could be. Is it because are best and brightest engineers give Detroit a wide berth and would rather work for a fifth-rate tech company than an automobile manufacturer. You've got to admit that's part of it. I still don't see how repeated infusions of $25 billion for companies with market capitalizations of a fraction of that solves these problems. Rhodium Heart · November 18, 2008 01:16 AM Post a comment
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I remember several years ago, seeing a print ad for GM. It features an engineer who said he had worked for the last three years on daytime-running lights. THREE FRICKIN' YEARS!!! I mean, come on ... how tough it is to design a connection that says "turn car on, light on; turn car off, light off"? My thought was "these have to be the most stupidly engineered cars in the world."
Times haven't changed in Detroit. It's all small ball, played at slow pace.