To: BW2221
BTW, just before it went belly-up International Harvester hired an outsider without automotive experience.
34 posted on
09/15/2006 6:37:32 AM PDT by
muawiyah
To: muawiyah
There have been lots of people of people on FR praising the hiring on Mulally as CEO, but most people in the industry are less optimistic. The auto industry is very competitive and really a different kind of animal. The last time a major manufacturer hired outsiders, it was GM hiring consumer products people to run marketing and Oldsmobile Division and the results were disastrous.
Some things Mulally will discover, if he hasn't already:
- It's much more competitive than Boeing - you're competing against Toyota, Honda and even GM rather than a government-controlled bureaucracy (Airbus)
- The government subsidizes Boeing and awards them major contracts because they are the only major American manufacturer. The government doesn't care if people buy Fords that are built in Michigan or Toyotas built in Kentucky. In fact, the heads of the "Big Three" have been trying to schedule a meeting with Bush since May. He has had time to meet the Little League World Series champs from Georgia, but not the heads of the "Big Three."
- Working with a dealer organization (independent businessmen) is a challenge. They don't take orders like company salesmen
- Commercial airlines buy equipment primarily for rational reasons (price, operating costs, etc.). Consumers buy cars for emotional reasons (styling, the shape of the headlights, etc.)
- Boeing has enough Dreamliner orders to keep production running through 2010. In the automotive industry, you're measured on monthly sales
49 posted on
09/15/2006 6:59:57 AM PDT by
BW2221
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