Everyone knows that the Big Three auto makers are in trouble. What is less clear is why.
The common wisdom blames high costs to maintain their dealership networks, exorbitant labor contracts, and being out of touch with what Americans want in their vehicles. But a credible case can be made for ivory tower management which is not used to having to make hard choices in trimming the fat.
Bob Lutz, General Motors' Vice Chairman, in an interview with NPR's Robert Siegel, probably best exemplified Detroit's attitude of aristocratic profligacy when he said,
"I've never quite been in this situation before of getting a massive pay cut, no bonus, no longer allowed to stay in decent hotels, no corporate airplane. I have to stand in line at the Northwest counter," Lutz says. "I've never quite experienced this before."
Don't you just feel sorry for him?
The common wisdom blames high costs to maintain their dealership networks, exorbitant labor contracts, and being out of touch with what Americans want in their vehicles. But a credible case can be made for ivory tower management which is not used to having to make hard choices in trimming the fat.
Bob Lutz, General Motors' Vice Chairman, in an interview with NPR's Robert Siegel, probably best exemplified Detroit's attitude of aristocratic profligacy when he said,
"I've never quite been in this situation before of getting a massive pay cut, no bonus, no longer allowed to stay in decent hotels, no corporate airplane. I have to stand in line at the Northwest counter," Lutz says. "I've never quite experienced this before."
Don't you just feel sorry for him?
Policies that emanate from ivory towers often have an adverse impact on the people out in the field who are fighting the wars or bringing in the revenues. -Colin Powell
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