Magrath: Okay, by training you're a scholar of religion, and I'm a journalist. So let's dive headfirst into a heated, highly sensitive, incredibly difficult business topic: Detroit.
Magrath: You cannot be relevant with a headquarters in the midwest. You can't be impartial and forward-thinking when 8/10ths of the people in your area depend upon you and buy your products.
Sadlier: See, I disagree with this argument. Hear it a lot, don't like it.
Sadlier: Look at Dell Computers. Granted, Austin's not like the rest of Texas, but still.
Magrath: Austin might as well be Berkeley. It's nothing like Detroit. And computers aren't cars. Also, computer people aren't as isolated as GM execs seem to be (with the apparent exception of the jerks who made Office 2007 and Vista). GM should endeavor to be Apple and think ahead, innovate with style.
Magrath: And anyway, maybe the midwest is bad for Dell too. It just pumps out cheap computers at maximum profit designed to last till the warranty runs out, and it inflates its numbers with massive "fleet" sales to corporations and government institutions. In other words, it's the old GM. 
Sadlier : Okay, here's the problem with GM's location: it has led to a situation where GM employees are largely from the midwest. That means there's not the range of perspectives and worldly experience you'd ideally like to have in a leading company. No disputing that.
Sadlier : But I think that's a hiring issue, not a regional issue. Get someone in charge of hiring who targets talent regardless of regional affiliation, and you're good.
Magrath : I'm certainly not going to take a job in the midwest, are you?
Sadlier : If GM reinvented itself as a cool company to work for, and paid well? Absolutely. If Google were in Detroit, it'd still be Google. And people would still want to work there.
Magrath : No, absolutely not. I've never lived more than 12 miles from an ocean and I never will. (Of course, if GM really is offering us executive titles and salaries, I could be convinced that one of those lakes is an ocean.)
Sadlier : Ha. Well, that's a personal preference. Mine too, as it happens -- but negotiably so. I could be persuaded by a cool new GM.
Magrath : So your contention is that the midwest has a lack of talent? Or that the good talent goes east and west?
Sadlier : I don't care who's got a lack of what. GM should hire the best people, period, without giving preferential treatment to midwesterners, as has long been the case. That's all I'm saying.
Sadlier : Sure, all else being equal, good talent goes east or west. But if GM reinvents itself as a cool company with products that make people say "Wow," I think that would attract good talent.
Magrath : Talent is an interesting one. I know guys who've gone to Michigan to become automotive engineers because they want to be in the car biz. They want to work in Detroit and shape the domestic car business. I also know other engineers who went to better schools (sorry, Michigan) with no clear idea of where they wanted to go. One's in aerospace now and the other is working on solar panels. They were top of their class in everything and got scooped up by some very high-end employers. Would GM really be able to attract those guys from the top schools (which, by the way, takes serious cash)? I worry that even a cool new GM might be stuck taking people out of automotive engineering programs who love cars but aren't necessarily the sharpest tools in the shed.
Sadlier : Yeah, maybe. But first things first: build a cool new GM. I say the talent will follow.
Magrath : Build it in Detroit though? Let's take a step back to my argument about Detroit being bad for GM. Say you live in a culturally and geographically isolated region that's ruled by a benevolent king. Gold flows as freely as the mead. Life is good and harvest season is rich. But then you hear that other regions have begun to switch from rye (which you've been producing since anyone can remember) to barley. Well, you know all about rye. And everyone you know likes rye. And you're all getting fat on the profits from rye. You assume the barley producers are being silly, and you keep on producing rye. Eventually demand for your rye dries up, and nobody's quite sure what's wrong with their grain. 
Magrath : Now imagine instead that the king ruled you from a thousand miles away, where people ate rye, barley, rice, quoina and corn. He'd see the writing on the wall ahead of time and organize a shift in production to keep pace with changing consumer preferences.
Sadlier : Have you considered a second career as a fairy-tale writer?
Sadlier : Also, as it happens, GM is in fact ruled from a thousand miles away at the moment.
Sadlier : Question though. Suppose GM really did hire us and relocate us to Detroit.
Would we inevitably fall into that insular mindset you're describing? Is it the midwestern culture and isolation that breeds that way of thinking? Or is it rather that the people in charge at GM have long been close-minded by nature, and like has hired like?
Sadlier : I'm going with the latter. I still say it's a talent issue more than a regional one
Magrath : Interesting. It could be another one of those issues where seniority and political posturing trumps merit, so that nothing changes but the name on the big door. Eventually people get set in their ways and, if we're being honest, afraid for their jobs, so they're not willing to take risks or fall out of line. Herd behavior.
Magrath : And no, I don't think you and I would fall into that trap, but that's probably why we're not being recruited by the General new or old.
Magrath : They really should be looking at things from a fresh perspective. Not that I don't dig Bob Lutz, but he was hardly cutting edge.
Magrath : Here's another issue, and Katy Perry touched upon it re: her career. She said in an interview that she will never be as big as Madonna, that nobody will ever be that big again; the industry has changed and can't support that. The auto industry is the same way I think. GM will never be as big as they were. No company ever will be. The landscape has changed. So if GM's slice of the pie is inevitably going to be smaller, then how can it afford to invest the money it must in order to produce the "Wow" cars you're talking about? Also, all of this revolves around the ever-fickle, quarterly-profit-loving American stockholder. A private company can take a loss for a sustained period of time to come out leaner; GM had to go into bankruptcy. Going forward, how are they going to explain to shareholders that big investments in quality products are advisable? And that consequent short-term losses are acceptable?
Sadlier : On the investment question, hey, GM can whine till the cows come come about how the market has changed, but at the end of the day, it's the quality of its products that will determine its success. You can't compromise on the investment required for that. As for stockholders, yeah, that's another issue. But plenty of American corporations have succeeded in this climate, against international competition no less.
Magrath : Name one that faces the kind of comparative disadvantages in raw materials costs and labor costs that GM does relative to its international foes.
Sadlier : Whatever. Can you imagine the Germans or the Japanese, to take the two most prominent examples, whining about domestic conditions and how they're standing in the way of competitiveness? 
Sadlier : No. They'd just make it happen.
Magrath : But how do Germany and Japan deal with health care?
Sadlier : Taxpayer money. Universal state-provided coverage. Which is good for employers. Which is why you've seen this unlikely alliance recently between automakers and those who are advocating for universal healthcare in the US.
Magrath : I never found that alliance unlikely at all.
Sadlier : Well, unlikely in that on most other issues the two camps don't see eye-to-eye.
Magrath : But seriously, is a competitive, profitable, high-volume domestic automaker still a possibility in this day and age, assuming we don't levy punitive import tariffs (which may be a blog for a different day)? Or roll back the minimum wage and child labor laws I suppose.
Sadlier : Well, right, import tariffs are a huge advantage that Japanese automakers enjoy.
Sadlier : Did I ever tell you about the teacher at my Japanese high school who had the OJ Simpson-model Bronco? Paid $20,000 just to bring it into the country?
Magrath : That's the most money anyone's ever spent on a second-hand Bronco.
Sadlier : Yeah. That's what you have to do if you want a non-Japanese car in Japan.
Sadlier : To your question, I don't know if it's a possibility. Honestly there's a lot of factors pointing toward "no."
Sadlier : Notably, (1) German cars -- increasingly the world standard, I think -- have few obvious signs of cost-cutting, so it's going to be awfully tough for a cash-strapped GM to compete with them in the short run, and (2) Japanese automakers will always enjoy a comparative edge due to those punitive tariffs and the consequent lack of domestic competition.
Sadlier : Back on your question about the cost of labor and materials...even if those costs are equal across the board, (1) and (2) put the US at a distinct disadvantage
Magrath : Cadillac can get away with (1). If GM pulls out all the stops, I think they can build a highly competitive car deserving of a high price tag. The CTS proves that. They just need to stop pandering to us with "The biggest car for the least money!" edict. Just build a good car and charge people more money for it. They can out-cheap BMW and Mercedes, but they can't out-cheap the Japanese or Koreans without just looking like cheapskates.
Sadlier : GM as the American Volkswagen, eh? I dunno. But it's better than a lot of ideas floating around out there.
adavis2493 says:
06:35 PM, 07/ 3/09
I agree that GM has to move their offices somewhere else that is more "Cosmopolitan".
lostandfound08 says:
07:24 PM, 07/ 3/09
Considering that California is in worse shape than Michigan right now (and that's quite a feat), I don't know if I'd entrust a car company to the yo-yos on the coast.
someguyposting says:
07:29 PM, 07/ 3/09
And I agree that rather than moving, they need to make the company into something that will attract top talent.
BTW, the University of Michigan's College of Engineering is consistently ranked one of the best in the nation. Fore example, the US News and World Report has the Mechanical Engineering Dept. (common source for automotive engineers) at #2 in the country.
stovt001 says:
12:07 AM, 07/ 4/09
I'm still formulating my thoughts on the exact points in this discussion. On the broader topic of GM's overall survival, I'm growing increasingly skeptical. The latest reports show the Cadillac DTS replacement, called XTS, will be a FWD car based on the Epsilon II platform shared with the next Impala and an upcoming Buick called Regal. The current DTS shares its platform with the current Impala and Buick Lucerne. The XTS will hardly be the vehicle to continue with the CTS's success. This new GM looks frighteningly similar to the old GM, and that does not give me hope for their future.
fuhteng says:
09:16 AM, 07/ 4/09
Arrogant asses. I'm from a state you f***ers couldn't find on a map and I've done more traveling than you two combined. Detroit has a bad rep because it is poor. How dare you assume the 'mid-west' is full of uneducated hillbillies.
tailgate1234 says:
10:27 AM, 07/ 4/09
GM's and the other domestics design decisions (I'm not talking about engineering) reflect their midwest, insular location. How many fashion designers are based in Detroit? The big 3 should think about setting up design groups in California and Europe.
ps: to poster fuhteng: the people managing Sears and JCPenney are no doubt bright and well educated too.
jerome81 says:
11:26 PM, 07/ 4/09
This post is completely worthless.
Explain to me how Detroit was at one time the wealthiest city in the world. It was in the midwest then. Explain to me how Detroit could attract any top talent they desired. It was in the midwest then. Explain to me why the city really matters more than the talent you bring there.
I was born in Michigan, grew up in Idaho, went to school in California. The only folks who don't wanna work in the midwest are the closed-minded folks who have never been there, never lived there, never visited there and simply assume that if it isn't the east or the west coast it doesn't matter.
I'm the first to admit, Detroit lost its chance at "cool city" status a good 40-50 years ago. But it doesn't mean good engineers, good business people, and good companies can't be headquartered there. And you wanna lump Detroit in the midwest, fine, put Chicago in there too....and don't tell me Chicago isn't, hands-down, one of the greatest cities in the world. Chicago's economy is #4 in the world in GDP. Its affordable to live in but offers nearly everything you'd find in New York or Los Angeles.
So I don't buy this for a minute. Its not about where you are, its about the quality of your people. I've seen companies based in the boonies across the US that are incredibly successful, I've seen god-awful companies based on the coasts (banking comes to mind....The government of the state of California also comes to mind).
Worthless thread. Detroit was at one time wealthy as hell, brought in millions of immigrants, and had 3 of the largest, most powerful companies of the face of the earth. But because today they're struggling means the midwest is worthless to business? Please...............
ryster says:
05:20 AM, 07/ 5/09
The current Impala is built on the W-body platfotm. The DTS is on the K-body platform. The Lucerne is on the H-body platform which is related to the K-body.
The W-body platform isn't related to the K or the H.
texquire says:
07:59 AM, 07/ 5/09
I've visited Stuttgart, where MB and Porsche are located. There's not much to that city either. If you want to visit the car museums or factory floors, great. If you want to take in German culture, that ain't the place. In other words, a factory town is a factory town is a factory town.
Building a car involves many tasks, including design, assembly, finance, and marketing. No one location can be the best at all the tasks that go into building a car.
If I recall correctly, BMW and Mazda have design centers in their home countries, but also in California. Some assembly is done in German and Japan, but they also have assembly plants in the U.S. too. There's no reason why finance and marketing should be done in where assembly is. NY has established industries there.
As for talent, I've always wondered what the automotive industry pays and where it recruits compared its engineers as compared to oilfield services, aviation, and aerospace. If they're not paying top dollar and recruiting from the best schools to secure the best talent, then garbage-in means garbage-out.
someguyposting says:
09:53 AM, 07/ 5/09
BTW, the authors hold up Google as a model place to work. Guess where Google co-founder Larry Page grew up? ... Lansing Michigan. He holds a BS in Computer Engineering from the University of Michigan.
calcarl says:
11:17 AM, 07/ 5/09
Just to make sure I fully understand the argument, the issue is that GM is located in the midwest. Being in the midwest, it cannot be relevant because all of the talented people have fled to within 12 miles of the ocean after not attending midwestern colleges (which I assume are irrelevant for the same reasons as GM). Those reason include, by inference, cultural and geographical isolation preventing any kind of long-distance travel, thereby depriving residents of a range of perspectives and worldly experiences, leading to an "insular mindset" in the people of the region and therefore, the employees drawn from that pool. Is that about right?
As far as the insular mindset is concerned, I admit it can be hard to evaluate a situation from within it. I probably can't see from my prospective smack in the middle of the plains here what you can from your saddle high on the coastal range. However, I wish you had given us midwesterners a more detailed description of your view from afar so we could figure out exactly what you're looking at. At least, I assume it's from afar, having "...never lived more than 12 miles from the ocean..."
I realize you intended only a commentary on GM, but by generalizing about the culture of GM and inferring that it's the result of having so many midwesterners in the ranks, you have for all intents and purposes blamed the midwest and everyone here (who apparently share the same mindset and lack of talent) for all of GM's woes. So, in the name of research, might I suggest a fact-finding visit? Because if we're a bunch of insular, isolated, closed-minded people lacking in worldly culture and education, then based on this piece it kinda sounds like you guys might be happier here than where you are now. We should have no trouble getting you near the coast. Michigan has over 3000 miles of it (compared to California's... 850 is it?).
In my admittedly midwestern layman's view, one of the biggest hurdles GM faces is overcoming the (not unjustly-earned) reputation for past poor quality amongst people who haven't even been in a GM car since Grandma totaled the Regency Brougham on her way to that bingo tourney in Van Nuys.
It can be surprisingly hard to change the minds of open-minded, worldly, cosmopolitan folks, especially the self-proclaimed kind. If they can't figure that out, GM could crank out the best cars in the world from the most cosmopolitan city on the planet and it won't make a bit of difference.
mnorm1 says:
12:04 PM, 07/ 5/09
"You cannot be relevant with a headquarters in the midwest."
Good thing all the really smart people went to California, just think how bad it would be if they hadn't. After all, Michigan is still paying bills with cash, not IOUs.
mercedesfan says:
01:51 PM, 07/ 5/09
I know I am not going to make many fans, but I kind of agree with this post. Having spent a great deal of time in the mid-west I know I could never live there (mostly because of the weather). The people are truly some of the nicest folks you will ever meet in your life and thanks to small populations most mid-west states don't have the same budget or crime problems the coastal states have, but that isn't enough to make me move there(okay maybe Chicago).
It really is an insulated area. The people are by no means dumb, some of the brightest and most ethical engineers I know came out of Michigan, Missouri, and Illinois, but the culture is different. It doesn't encourage the same risk-taking that living in large, cosmopolitan areas does; and GM needs to be forward thinking right now. Smaller populations mean trends/ideas spread more slowly and there are fewer differing opinions.
That isn't to say GM can't make it work in Detroit, but I honestly think that they might respond more quickly to changing market conditions if they were headquarted in a more cosmopolitan area. In fact, I think things would work better if they just moved to Chicago. It's bustling ports mean the same flow of ideas that occur on the coasts. No need to leave the mid-west at all, just Detroit.
Oh, and generalizing the entire mid-west this way is just ridiculous. It pretty much confirms the generalization most of us Northern Californians have about Southern Californians: elitist, self-centered, and out of touch with reality.
bimmerjay says:
01:51 PM, 07/ 5/09
"The only folks who don't wanna work in the midwest are the closed-minded folks who have never been there, never lived there, never visited there and simply assume that if it isn't the east or the west coast it doesn't matter."
I don't want to work in the midwest and I was born and raised practically from within the auto industry in SE Michigan.
Your statement is an untrue absolute, there are numerous people like me that got the hell out and would probably not go back. The culture (to me) is boring and homogeneous, obesity is epidemic, and it is very much an insular world. The best thing for GM, Ford, and Fiat America would be to get their people from and into the markets they need to conquer to succeed, which are the coasts.
t10 says:
02:20 PM, 07/ 5/09
Didn't such forward thinking companies as Nissan move NA design from California to Tennessee ? and of course that failed auto maker known as Honda has significant manufacturing and engineering in Columbus Ohio.
I doubt many businesses will be moving headquarters to the west coast where California is approaching Argentinian financial status (if it had a currency it would have defaulted with it's IOUs). All this implies a necessary higher tax burden and more flight of business.
The midwest is not in much better shape (especially Michigan, but also Ohio). If anything a Texas base might make sense from a financial and talent basis. But the proximity to excellent universities in the Midwest is hard to beat. Michigan, Illinois, Chicago, Northwestern, Ohio State, Purdue and numerous other universities with large highly rated technical departments and business schools and a globally sourced student body are only a stones throw away.
someguyposting says:
04:37 PM, 07/ 5/09
Apparently mid-westerners are commonly thought of as insular, provincial, close-minded, etc.
Does the fact that the thought is common suggest that it's perhaps valid?
On a related note, southern California is commonly compared to trail mix - full of fruits, nuts, and flakes.
Don't worry, some of us know better. We know that it's actually full of arrogant fruits, nuts, and flakes. ;-)
blobster says:
12:24 AM, 07/ 6/09
HAHA...well, as a native CENTRAL Californian, I'll also say that the Northern Californian group is a bunch of old, moldy hippies and that the SoCal crowd is a bunch of BMW-driving hipsters with attitude.
Maybe that the point is that we should avoid generalizations, altogether!
blobster says:
12:27 AM, 07/ 6/09
Hey, it's not our fault that Arnold and the legislature can't balance a budget, but I do blame my fellow Californians for electing them and giving them the opportunity to screw things up. OH, and the state also overwhelmingly voted for Obama...another big spender. Just an interesting note!!!
The workers in the state still constitute the 7th largest economy on the planet. We do work pretty hard out here.
johnnyr3 says:
03:56 AM, 07/ 6/09
"Japanese automakers will always enjoy a comparative edge due to those punitive tariffs and the consequent lack of domestic competition."
This old canard again.
I suspect the Japanese teacher Sadlier is talking about actually imported his Bronco over there much like people here import R34 GT-Rs, but did not actually purchase one from a dealer. If you buy your foreign makes that way of course you're going to pay through the nose.
VW, BMW and Mercedes have ZERO problems moving metal in Japan. None. Its the products. Again. Still. First, why the hell would ANYONE (Japanese, American or Martian) buy an Aveo over a Fit unless they wanted torture themselves for some Paul Bettany in DaVinci Code-esque reason? Japan makes small cars better than the Americans, period. Second, the Germans share similar tax conditions, ergo, they have the products to match. Which is why they are able so sell their cars there much easier.
GM has tried time again to sell their wares in Japan, but to no avail. Why? The culture and environment are different. The Japanese get taxed on engine size (yearly), gas, actual size of the car (again, yearly) AND they have to own a parking space to buy a car; the cost of that is ALSO dependent on size. The bigger the space the more money is cost to purchase one.
Knowing this, is it any wonder why Kei cars are so popular in Nihon? Or why high strung 4s and force-inducted 4s and 6s are more popular than V8s? Cars like the G8 are going to be niche in an environment like that. If I were to live in Japan the first thing I'd do (besides seeing the life-size Gundam in Shiokaze) would be comparing VeeDub Polos to Honda Fits.
The End. Roll Credits.
crowb says:
06:01 AM, 07/ 6/09
I love reading these. Always amusing and thought provoking. Thanks guys.
dougtheeng says:
06:38 AM, 07/ 6/09
I don't exactly know how to stomach people from California essentially saying that a city/region is useless and should be put down. This is a pretty arrogant point of view.
1487 says:
07:02 AM, 07/ 6/09
Not only is Magrath arrogant and pompous, he isn't too bright. How many successful car companies have started and thrived on either coast? None. The most successful car company in California is based in Toyota City, Japan and their culture has little in common with California's culture. The fact that Magrath thinks that everyone working for GM came from a midwestern farm shows how out of touch he is. The Camaro was designed by a guy raised in California who happens to be Korean. GM has people from all over the world working in on designs and engineering. I saw some info about the Lacrosse and one of the designers is from Cali.
"VW, BMW and Mercedes have ZERO problems moving metal in Japan. None. Its the products. Again. "
If you are going to correct people know what you are talking about. Japanese automakers have about 95% marketshare in Japan. Its extremely difficult to sell foreign products there and no foreign automaker owns a plant. European automakers have a minute marketshare in Japan and they are nothing more than minor players in Japan. The idiotic premise that American automakers cant compete in Japan because they lack the know how is disproven by the fact that GM/Ford are very susccessul in Europe which is the most brutally competitive in the world.
1487 says:
07:20 AM, 07/ 6/09
"I don't exactly know how to stomach people from California essentially saying that a city/region is useless and should be put down. This is a pretty arrogant point of view. "
Not only that, it just proves that these guys are totally lacking exposure and pay little attention to the industry they supposedly follow and write about. The guy who was heading up SVT for Ford was Chinese or Korean (can't remember which) which is just one example of how international the workers are in Detroit. The G8 shown at the top of this entry was designed in Australia which is like 8k miles from Detroit last I checked. GM's current CEO worked his way up by running operations in South America and other parts of the world.
"The workers in the state still constitute the 7th largest economy on the planet. We do work pretty hard out here."
Are you serious? Its the 7th largest economy because its the largest and most populous state in the richest country in the world. Its about numbers, not about how hard working the citizens are. NYC has the largest economy of any City in the US and thats a function of population not an indicator that New Yorkers "work harder" than those in LA or Chicago. The east coat megalopolis is just as populous (maybe moreso) and properous and California- its just spread out over 7 states.
1487 says:
07:31 AM, 07/ 6/09
"Notably, (1) German cars -- increasingly the world standard, I think -- have few obvious signs of cost-cutting, so it's going to be awfully tough for a cash-strapped GM to compete with them in the short run, and (2) Japanese automakers will always enjoy a comparative edge due to those punitive tariffs and the consequent lack of domestic competition. "
GM has more share than the German automakers combined in the US. Compared to the Japanese automakers the Germans are fringe players and hardly even compete with the mainstream market that comprises most of GM's sales. #2 is correct in that the Japanese don't have to spend time and money defending sales at home. In terms of competing here in the US the JDM really isn't much of a factor. Within the last few years the entire cost advantage enjoyed by the Japanese has been eliminated here in the US. After 25+ years of being at a major disadvantage I would say that is pretty significant.
blobster says:
10:22 AM, 07/ 6/09
1487 - Yes, I'm serious. And if you hadn't noticed, we are experiencing negative population growth over all and the one segment that continues to grow is the illegal immigrants in California. As a teacher I see more and more of them in my classrooms and it's just a fact of life now no matter what anyone says about it. Hey, my wife is a LEGAL immigrant, so I've got no beef there, especially since we need more skilled LEGAL immigrants.
Point is, being the largest state in the richest country in the world does not magically translate into a robust economy. Take a couple of classes before you make an ill-informed statement in public, will ya?
1487 says:
10:30 AM, 07/ 6/09
So population and economic output aren't related? Never heard that before. Having the most people definitely helps your chances of having higher levels of economic power. CA is 2nd or 3rd largest by size and largest by population- makes sense that its the biggest economy in the US. Why wouldn't it be?
m_thrizzle says:
11:00 AM, 07/ 6/09
jerome, if Michigan is so great why did 1/3 of my co-workers move from Michigan to CA? I lot of people do want like the climate of Michigan either, with its hot/humid summers and frigid tundra winters. I am trying not to knock Detroit but I do think GM needs to get design operations on the coasts. How are they supposed to gain market share there if they are out of touch?
I've mentioned the locale and lack of pull for talent from the aerospace industry in Japan/Germany before, so here are 2 new points re: GM.
1) The Big 3 have the honor, but also burden, of building the US of A during the last century. They helped to create the middle class and gave people the opportunity to explore America in their cars. However, these same factories, corporate culture/processes, and employees that developed our country are now burdensome legacy costs that are not sustainable in today's lean and mean business climate. While we can harp on GM for its milquetoast products over the years, we need to somehow give them due credit for what they have done for us in the past. Perhaps the govt funded bankruptcy is that reparation?
2) The Big 3 are only now finally getting that they need to leverage global platforms to reduce costs and produce better products. Every other car company sells global cars and tweaks them for specific markets. The Big 3 dabbled here and there but never jumped in with enough commitment to show that it was the better way. I think part of the impetus was their union contracts disallowing foreign vehicle production, to keep the jobs 'at home,' but I'm not sure.
A bonus #3) Good design will sell nearly as well as high quality, while increasing profit margins. German brands are not the most reliable cars but they are attractive and people flock to them, keeping transaction prices high. Hopefully GM can shift towards this in the future.
mlh says:
12:47 PM, 07/ 6/09
Regardless of how you feel about Wal-Mart, it would be hard to argue that its success as a business has been hampered at all by being headquartered in a small city in Arkansas.
rlg86 says:
08:04 AM, 07/ 7/09
This is NOW the dumbest IL post I have read yet, including the ones by JRiz/Bono(head), and that is saying something.
Speaking as someone who was born & raised on the East Coast, went to college in the Midwest & CA., and works in the poor benighted Midwest auto industry, I can speak form experience that the East Coast and (especially) CA. are as insular as Detroit. Any large successful culture will be, and nearly all of them will resist change. Look at Apple; it took near-death in the late 1990's to get them going again. And given the mess the US economy is in right now (driven by the coast-based financial industry), this does not speak to any reserve of exceptional knowledge on the coasts. And since Microsoft is based on the coast, that would seem to be evidence that this whole theory is a crock.
And as far as how insular Detroit is, McGrath & Sadler obviously know nothing about what the auto industry engineering work force ACTUALLY looks like. In my group alone we have people from the East Coast, Midwest, Taiwan, China, India, Germany, and England. A pretty cosmopolitan group.
There is a lot of movement between auto and aerospace and always has been, at least in engineering. In the late 1990's, a lot of aero people came to auto. Now a lot are going the other way. It will probably swing back in a few years again. This is easily done, since the tools are the same.
Finally, let me share the recent words of a friend who left GM last year to go work for a defense contractor; "I never appreciated how well GM was run until now."
04gtpws6 says:
12:08 PM, 07/ 7/09
no question, California does a bang up job with pretty much everything
"SAN FRANCISCO -- California suffered a new setback in its financial crisis on Monday when Fitch Ratings cut its rating on the state's general obligation debt to just two notches above junk status.
Fitch cut its rating on California's long-term bonds to "BBB," two notches above speculative grade, citing the state's budget and revenue crisis.
"