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An Open Letter to the Leaders of Chrysler, Ford, and General Motors

Mon, 03/31/2008 - 22:00
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America needs you to get your act together. This isn’t just about jobs, although many people are getting hurt because of your mismanagement of three of the most important name brands in America. You’re a symbol of what used to be the strength of America, and you have lost your way. Two of you have new management, so you have a good opportunity to right the ship.

Cutting jobs, slashing, and burning aren’t the answer. These short-term fixes are just that, short term, and won’t fix the problems that you have. Throwing people out of work is easy, but you have fundamental management changes you must make. Try to look back to when you made great cars that people were proud to own. The question isn’t whether you can make a good car; the question is whether you can make one at a cost that allows you to compete with other companies. I have a Mustang and it’s a great car.

Last fall, I ordered a Jeep Commander, and the order process spoke volumes about why you’re in trouble. My order was acknowledged on October 22. The car wasn’t scheduled to be built until November 19. On November 20, I received notification the car had been built—it only took one day to build the car. The car arrived at the dealership on December 3. Now remember, this is a company that is dying from lack of sales, so I don’t think Jeep has a huge backlog. If you did a value-stream map, there were three days of value-added work, (one to build and two to transport), and 27 days of nonvalue-added work.

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