General Motors Executives Had Little Use for History

Hi folks -- It looks like tomorrow GM will declare bankruptcy. Business historians will look back at this time as one of the most significant in American industrial and organizational history, and plenty of blame will be shared among various executives, UAW leadership, the blue-collar workforce, and federal government. Ironically, perhaps, GM has had little use for history until recently, and indeed has avoided releasing documents that would have provided historians with the raw material to write a thorough and useful 20th century history of America's greatest firm. One can cautiously learn from history.

For example, the last time that GM had its back to the wall, in 1932, Barons magazine reported renewed efforts to sell cars in the wake of a 35 % decline (note in April, 2009, the decline was more than 40% from 2008).

The headline from the April 4, 1932, issue of Barron’s proclaimed, “General Motor’s Sales Off About 35%” followed by the next headline, which read, “Super Sales Force to Distribute Buick, Olds, and Pontiac to be Headed by Richard H. Grant.” The latter article reads, in part:

Formation of the Buick-Olds-Pontiac Sales Company, a super sales organization for the distribution of Buick, Pontiac, and Oldsmobile cars, is announced in Detroit by Richard H. Grant, vice-president of General Motors. Mr. Grant, in addition to his activities as general supervisor of sales, advertising, and service for General Motors, will have active charge of the new organization. “The new organization is planned to intensify and improve the operating efficiency of our distributing outlets for these three lines of cars,” Mr. Grant said. “The present field organizations for the three brands will be combed for the best talent available and their united efforts under one directing organization will, we feel, form the strongest and most efficient sales force ever assembled in the automobile industry. The three cars will continue to be merchandised through the present dealer and distributorship organizations and the management expects to increase materially their sales through the new organization.” Richard H. Grant, under whom the new organization will function, says: “The great middle class ground from $500 to $1,500 is in need of special attention. It would be economic folly to offer only one car. The public demands, and we shall continue to offer, three cars in this class. All talk of a discontinuance of any line as a result of this move is utter nonsense.” “The nation is junking more cars than it is buying. Auto buying has been at a low level for two years and something must turn soon to bring the public back in the market for new cars. People who have had automobiles and who can afford them will never deprive themselves of this modern luxury.”

Richard(1877-1957) and Laura Grant, about 1955

Now perhaps we can see why the announcement of GM's ending the Pontiac brand makes no real sense today, just as it would have in 1932. Same with the fate of Oldsmobile. These were cars for everyday people, and it is the purchases of everyday folks that will take us out of the auto recession. Both brands had a very loyal following.

Richard Grant remains one of my auto history heroes. I live on property that was once a part of his Normandy Farms estate located in Washington Township, Ohio, near Centerville and Dayton. But that is not why I value his professional life. Grant was both very smart and very practical; he took life by the horns and shaped his world.

For more on Grant, see my The Automobile and American Life, pages 54, 59-61.

Pick-Up Trucks of the Future and Revised CAFE Standards

Gretchen Wilson, also known as the "red-neck woman," posing on the bed of a Chevy truck

Hi folks -- this is a response to an inquiry I just received from a reporter who writes for the Christian Science Monitor:

Hi Patrik -- You have asked a complex and important question about the future of light trucks given 2012/2016 CAFE standards. Until now, the bundling of trucks and SUVs under CAFE was a travesty. SUVs are for the most part a luxury and a consumer choice used primarily for the convenience of the owner and family. Light pick-up trucks are not, however. They work as hard as their many owners. If P.J. O'Rourke, writing recently in the Wall Street Journal, is right that the greens and elitist bureaucrats are now disproportionately influencing Washington legislation and Detroit manufacturers, then the pick-up as we know it is in trouble. And while April, 2009, sales statistics suggest that pick-up sales are really no different than passenger sales in terms of the large downturn (about 40%), smaller, lighter, and less powerful trucks in our future may be shunned by the "authentic" pick-up buyer, who does want a large bed to haul all kinds of stuff, room on the inside for his overweight body, wife and children, and a menacing front bumper guard that could push my old Porsche into a ditch with minimal effort.

If models do change to become more energy efficient and less powerful, the good old boys and girls who do not live in the Virgina suburbs will keep their old trucks forever. And they need to, for many are small craftsmen and repair folks who don't have the money to buy new every two to four years. If they cared what people thought about what they drove, they wouldn't be in a truck to begin with!

I have a good friend, Cliff Brockman, who lives in Xenia, Ohio, on a small farmette. He has an old 1975 Chevrolet Silverado with enough miles on it that it probably could have gone to Mars by now. I can't tell you how many engines, transmissions, body parts, etc. have been put on this truck over the years. Doors rust, rocker panels fall off, and yet the truck still goes, and probably would make it to California today, although with its oil leaks you would need to take a couple of cases of 20w-50 oil along. The truck is painted primer black, except for sections that have faded off on the hood, and with its gun rack, looks like something someone would keep in an Aryan Nations or Taliban compound. But boy, does it get the job done! Cliff doesn't make a ton of money, but he hauls wood, scrap parts, old GM engines, etc. in it, and it doesn't fail him. Consequently, with his supplementary income and activities, he does just fine. And it is often weighed down beyond capacity.

I think what Cliff has done for years is what many Americans will do, if pick-ups become more expensive, less powerful, lighter and with less capacity. They will say the hell with Washington and the bureaucrats, even if they tax gasoline or force stricter emissions controls.

To: John Heitmann
Subject: cs monitor story on 'truck of the future'

Hi John, I'm working on a story about how the new fuel efficiency standards will affect America's love affair with the truck. I'm focusing particularly on the vast legions of small contractors who make their livings off the beds of trucks, and how higher costs, different configurations, etc., will affect them. Will we see a surge in rebuild shops so they can keep their old trucks on the road longer? Since they often operate on small margins, will they be unduly punished by higher standards, and will their trucks even be able to do the job? I'm setting this against the backdrop of the truck's unique role in American society and work culture. Curious to get your thoughts. An email response would be fine on this end, since I know you're in Germany at the moment. Many thanks! best, Patrik.

/Octavia 2

P.J. O'Rourke on "The End of the Affair"

Thanks again to Ed Garten , who pointed out to me O'Rourke's elegantly written and thoughtful article that appeared in the weekend edition of the Wall Street Journal. Here is the link for those who want to read it.

O'Rourke's essay should be read not only by folks who lived the love affair with the automobile during the 1950s and1960s, but also their children who continue to wonder why Dad loves a car more than Mother! O'Rourke pulls no punches in this essay, and here are a few choice quotes:

"Politicians, journalists, financial analysts and other purveyors of banality have been looking at cars as if a convertible were a business. Fire the MBAs and hire a poet. The fate of Detroit isn't a matter of financial crisis, foreign competition, corporate greed, union intransigence, energy costs or measuring the shoe size of the footprints in the carbon. It’s a tragic romance—unleashed passions, titanic clashes, lost love and wild horses."

O'Rourke goes on to discuss horses and horsepower and the significance of mechanical power, which elevated our status, enabled us to be cool and "ennobled us." But subsequently, Americans moved to the suburbs, where the mundane tasks we pursued unwittingly turned the object of desire into an appliance. But despite this dilemma, we chose the car, the car didn't choose us, and perhaps there is a very faint hope on the part of O'Rourke that we can still choose to keep it in our hearts:

"But cars didn't shape our existence; cars let us escape with our lives. We're way the heck out here in Valley Bottom Heights and Trout Antler Estates because we were at war with the cities. We fought rotten public schools, idiot municipal bureaucracies, corrupt political machines, rampant criminality and the pointy-headed busybodies. Cars gave us our dragoons and hussars, lent us speed and mobility, let us scout the terrain and probe the enemy's lines. And thanks to our cars, when we lost the cities we weren't forced to surrender, we were able to retreat."

O'Rourke doesn't like what he sees right now happening to the automobile industry and the American automobile. Ultimately, what he fears, is the loss of freedom and liberty, orchestrated by pointed-head government bureaucrats and green environmentalists who are taking away from us something distinctly American. And here he is right on, for as long as Americans are on wheels, no government can monitor and control us adequately. The car remains our freedom machine, and hopefully we will stand up to keep it that way.

Opel Goes its Own Way

Alfred P. Sloan (6th from right) in Russelheim. 1929.

Eighty years ago, Alfred P. Sloan travelled to Russelheim, Germany, to formalize the General Motors Acquisition of Adam Opel AG. Unlike Ford Motor Company, which had set up its own establishments overseas, GM acquired a number of companies -- including Opel, Vauxhall, and Holden -- to become a true multinational corporation by the end of the 1920s. The relationship was far from a happy one at times-- particularly during the years of WWII, when the German Government used the Russelheim plant to manufacture critical components needed for the conflict ( i.e. Ju 88 Bomber parts) -- but in more recent times, Opel was one of the brightest units within GM, and a place where talent was groomed before coming to Detroit. All that is now apparently over, the result of GM's inability to sustain Opel, and the intervention of General Motors and the parts manufacture MAGNA.

Opel workers embraced Adolph Hitler during the 1930s.

I was never a big fan of Opels when they were imported into the U.S. during the late 1960s and early 1970s, sold on the lots of Buick dealers. To me, there seemed to be something cheap about them, but I am sure fans of the brand would roast me if they could catch me right now for saying those criticisms. It also happened that when I had my Unfall last Friday night, the car that hit me was an Opel, so I still see that insignia as the hood of the Opel made impact on the side of my VW. Opel cars and I simply do not get along.

1973 Opel GT, in my opinion the best post-WWII Opel

As Opel goes its own way, however, I wonder if GM's contraction in the world marketplace, and specifically Europe, actually parallels America's loss in influence in economic markets overseas as we battle recession and unemployment at home. Government officials and economists project an upbeat end to our recession after the next several quarters , but I wonder if something more lasting and significant is happening that will affect future generations of Americans in their search for the American Dream.

New Ducati 1098 Wallpapers

New Ducati 1098 Wallpapers

Ducati 1098

The Unvarnished Truth about the Current Automobile Crisis in America

Thanks to Dr. Ed Garten for forwarding me this letter. It is must reading for anyone interested in dissipating the "smoke" and getting at the heart of our current crisis:

Auto Supplier Tells GM Where to GO (and HOW to get there)!

This message says a lot about our need to stand up and be responsible. Hopefully it will get a wide distribution. This is one of the greatest responses to the requests for bailout money I have seen thus far.

As a supplier for the Big 3, this man from Franklin, Ohio, received a letter from the President of GM North America requesting support for the bail out program. His response is well written, and has to make you proud of a local guy who tells it like it is. This letter and Mr. Knox are real. Check it out at http://www.snopes.com/politics/soapbox/knox.asp

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This is GM's letter:

Dear Employees & Suppliers,
Congress and the current Administration will soon determine whether to provide immediate support to the domestic auto industry to help it through one of the most difficult economic times in our nation's history. Your elected officials must hear from all of us now on why this support is critical to our continuing the progress we began prior to the global financial crisis.
As an employee or supplier, you have a lot at stake and continue to be one of our most effective and passionate voices. I know GM can count on you to have your voice heard. Thank you for your urgent action and ongoing support.
Troy Clarke
President, General Motors North America

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Response from Gregory Knox, President, Knox Machinery Company, Franklin, Ohio

Gentlemen: In response to your request to contact legislators and ask for a bailout for the Big Three automakers please consider the following, and please pass my thoughts on to Troy Clarke, President of General Motors North America.

Politicians and Management of the Big 3 are both infected with the same entitlement mentality that has spread like cancerous germs in UAW halls for the last countless decades, and whose plague is now sweeping this nation, awaiting our new "messiah," Pres. Obama, to wave his magic wand and make all our problems go away, while at the same time allowing our once great nation to keep "living the dream." Believe me folks, The dream is over! This dream where we can ignore the consumer for years while management myopically focuses on its personal rewards packages at the same time that our factories have been filled with the world's most overpaid, arrogant, ignorant and laziest entitlement minded "laborers" without paying the price for these atrocities. This dream where you still think the masses will line up to buy our products for ever and ever. Don't even think about telling me I'm wrong. Don't accuse me of not knowing of what I speak. I have called on Ford, GM, Chrysler, TRW, Delphi, Kelsey Hayes, American Axle and countless other automotive OEM's throughout the Midwest during the past 30 years, and what I've seen over those years in these union shops can only be described as disgusting. Troy Clarke, President of General Motors North America, states: "There is widespread sentiment throughout this country, and our government, and especially via the news media, that the current crisis is completely the result of bad management which it certainly is not." You're right Mr. Clarke, it's not JUST management. How about the electricians who walk around the plants like lords in feudal times, making people wait on them for countless hours while they drag ass so they can come in on the weekend and make double and triple time for a job they easily could have done within their normal 40 hour work week. How about the line workers who threaten newbies with all kinds of scare tactics for putting out too many parts on a shift and for being too productive. (We certainly must not expose those lazy bums who have been getting overpaid for decades for their horrific underproduction, must we?!?) Do you folks really not know about this stuff? How about this great sentiment abridged from Mr. Clarke's sad plea: "over the last few years we have closed the quality and efficiency gaps with our competitors." What the hell has Detroit been doing for the last 40 years?!? Did we really JUST wake up to the gaps in quality and efficiency between us and them? The K car vs. the Accord? The Pinto vs. the Civic?!? Do I need to go on? What a joke! We are living through the inevitable outcome of the actions of the United States auto industry for decades. It's time to pay for your sins, Detroit. I attended an economic summit last week where brilliant economist, Alan Beaulieu, from the Institute of Trend Research, surprised the crowd when he said he would not have given the banks a penny of "bailout money." "Yes, he said, this would cause short term problems," but despite what people like politicians and corporate magnates would have us believe, the sun would in fact rise the next day and the following very important thing would happen. Where there had been greedy and sloppy banks, new efficient ones would pop up. That is how a free market system works. It does work if we would only let it work." But for some nondescript reason, we are now deciding that the rest of the world is right and that capitalism doesn't work - that we need the government to step in and "save us." Save us my ass, Hell - we're nationalizing and unfortunately too many of our once fine nation's citizens don't even have a clue that this is what is really happening. But, they sure can tell you the stats on their favorite sports teams. Yeah - THAT'S really important, isn't it? Does it ever occur to ANYONE that the "competition" has been producing vehicles, EXTREMELY PROFITABLY, for decades in this country? How can that be??? Let's see. Fuel efficient. Listening to customers. Investing in the proper tooling and automation for the long haul. Not being too complacent or arrogant to listen to Dr. W Edwards Deming four decades ago when he taught that by adopting appropriate principles of management, organizations could increase quality and simultaneously reduce costs. Ever increased productivity through quality and intelligent planning. Treating vendors like strategic partners, rather than like "the enemy." Efficient front and back offices. Non-union environment. Again, I could go on and on, but I really wouldn't be telling anyone anything they really don't already know down deep in their hearts. I have six children, so I am not unfamiliar with the concept of wanting someone to bail you out of a mess that you have gotten yourself into - my children do this on a weekly, if not daily basis, as I did when I was their age. I do for them what my parents did for me (one of their greatest gifts, by the way) - I make them stand on their own two feet and accept the consequences of their actions and work through it. Radical concept, huh. Am I there for them in the wings? Of course - but only until such time as they need to be fully on their own as adults. I don't want to oversimplify a complex situation, but there certainly are unmistakable parallels here between the proper role of parenting and government. Detroit and the United States need to pay for their sins. Bad news people - it's coming whether we like it or not. The newly elected Messiah really doesn't have a magic wand big enough to "make it all go away." I laughed as I heard Obama "reeling it back in" almost immediately after the final vote count was tallied. "We really might not do it in a year or in four." Where the Hell was that kind of talk when he was RUNNING for office. Stop trying to put off the inevitable folks. That house in Florida really isn't worth $750,000. People who jump across a border really don't deserve free health care benefits. That job driving that forklift for the Big 3 really isn't worth $85,000 a year. We really shouldn't allow Wal-Mart to stock their shelves with products acquired from a country that unfairly manipulates their currency and has the most atrocious human rights infractions on the face of the globe. That couple whose combined income is less than $50,000 really shouldn't be living in that $485,000 home. Let the market correct itself folks - it will. Yes it will be painful, but it's gonna' be painful either way, and the bright side of my proposal is that on the other side of it all, is a nation that appreciates what it has and doesn't live beyond its means and gets back to basics and redevelops the patriotic work ethic that made it the greatest nation in the history of the world and probably turns back to God. Sorry - don't cut my head off, I'm just the messenger sharing with you the "bad news." I hope you take it to heart.
Gregory J. Knox, President
Knox Machinery, Inc.
Franklin , Ohio 45005

Nissan GTR scissor doors

Nissan GTR scissor doors

Some of those parts will make it go faster, others will make it handle batter, and some will simply make it, um… cost more? Take the latest offering from LSD design, dubbed the LSD Flügeltürbeschläge: Lambo-style doors to us common folk.The LSD door kit comes as a bolt-in kit replacing the GT-R’s standard hinges and requiring no modifications to paint or panel work.

Suzuki Swift Scissors Door

Suzuki Swift Scissors Door Picture

A Reporter Asks Me Questions About Ford

Occasionally reporters contact me about contemporary auto issues. This morning, David Kaplan, a business reporter for the Houston Chronicle, asked me some questions about Ford. I have attached the questions from David and my brief answers:

Is there any overall thought you have about Ford in the context of the struggling auto industry?

"In my opinion, Ford is in the best shape of all the carmakers, despite the very real challenges in terms of finance and reduced consumer demand. They have the best product line, and most importantly, the government is not involved in their business. So all the compexity of trying to please multiple constituencies is not a problem at Ford the way it is at GM and Chrysler. Put another way, they have their autonomy, the most important aspect related to any large business, and that is critical."

Historically, how has Ford been perceived by the American consumer, if one can generalize?

"Until the recent past, Ford was seen as #2, behind GM in terms of breadth of product. But for some time, savvy consumers have recognized that Ford quality — all in all — has exceeded that of GM, and both the F150 and Mustang have a brand loyalty that is the envy of the industry. Above all — and especially now in times of crisis — Ford stands for "American Made" and America."

Do consumers still want trucks and SUVs? I know the Ford F-150 is hugely successful. Any thoughts on its future?

"Yes, Americans still want trucks. The F-150 is a workhorse for the farmer, jack-of-all-trades, and homeowner who takes care of the yard and the home. It reflects our ability to 'get it done.' Even if gas is $4.50 or more, many Americans will stick to their trucks and SUVs, because we like added room and the perception of enhanced safety if involved in an accident."

Do you think Ford is concerned that Chrysler and GM have advantages from either bailout funding or bankruptcy?

"I don't think that Ford executives perceive that GM and Chrysler have any advantages because of government intervention and financial support. Those two companies are just beginning to experience the confusion that comes from having too many cooks to stir the broth, so to speak. And who wants the UAW to hold a stake in the firm?"

Anything else you'd want to say Ford related?

"Ford should survive this crisis intact and will be a player in the global auto market for years to come. What the upheaval means for the future of our country, however, is the key question, and its outcome will do much to determine the place of the U.S. in the global economy during the 21st century."

Suzuki Swift Gallery

Suzuki Swift Gallery

Oval shapes, decent sporty feeling and quite powerful engine – these are the main characteristics of this ride. Personally, we like this car very much and we can imagine various types of modifications.

Suzuki offers a few engines, but the most powerful is the 1.5 liter 4-cylinder petrol engine with 102 hp (75kW). Considering the dimensions it’s very nice value.

Suzuki swift body kits

Suzuki swift body kits Image

The body kit consist of the front and rear bumper for 3- or 5-door body + sporty version (duplex exhaust tips) and side sills only for the 3-door version.

We must say that the front bumper matches great thanks to its shape and layout. Together with the front part make a perfect harmony. Its central part includes a quite big cut-out filled with a black perforated sheet and bounded with rounded edges to correspond with the side openings.

/W,I,P,

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Squirrel picture

New Squirrel Wallpapers

New Squirrel Wallpapers

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Squirrel picture

New Squirrel Wallpapers

White Sheep Wallpapers

Sheep Wallpaper

Sheep picture

White Sheep Wallpapers

Sheep Animal Wallpapers

White Sheep Wallpapers

Sheep Wallpaper

Sheep picture

White Sheep Wallpapers

Sheep Animal Wallpapers

The worst cars from GM, post-WWII

The Chevy Vega -- Clean Lines, but beneath the skin....

I have to start out this account by sharing with you the reason why I have ill-will towards GM. It wasn't always this way. My family -- displaced from Germany after WWII and just getting on our feet again -- began buying used Chevrolets in the 1950s, and our experiences were quite good. The first car I remember is a 1948 Chevrolet Fleetmaster, and particularly the interior and dash of that car, and the radio plate where a radio should have been. We followed up with a 1954 tw0-tone blue and white Bel Air, and then after a brief and disasterous flirtation with a 1958 yellow and white Plymouth, settled into a 1962 Chevy II.

Later my father purchased a 1972 Mailbu that was by all accounts a great car, and then as he approached retirement, he bought a 1979 Malibu Classic. It was that car that turned me against GM, because it had a THM-200 transmission in it that was far too small to be coupled to a small block V-8. Consequently, the car kept on blowing tansmissions, one after another, and GM never made it right it with my father. They kept ducking the problem, and thus my father, who had purchased this car to travel during retirement, was greatly disappointed. I owned it for a while after my father died, and ultimately solved the problem on my own by replacing the the THM-200 with a more durable and appropriate tranny. And it had other issues, including weak springs and valve guides that wore out way too soon, given the care it received.

So after that experience I resolved never to buy GM again, and thus shed no tears with GM's current problems.

For what it is worth, and given my bias, here is the list of the 5 worst GM cars, compiled with the help of Sean Falkowski and Rebecca Blust.

1. Chevrolet Beretta -- Sean Falkowski owned one of these cars and vigorously claims it was "the biggest piece of crap" ever. I have no details as to why, but since Sean is a graduate of General Motors Institute (GMI), I have to believe him.

1988 Beretta

2. The Chevrolet Vega -- books and articles have been written about his car, and the workers at the Lordstown plant who made them. This was GM's answer to VW and the Japanese competition of the early 1970s, and we should have known then that the reckoning we are now facing was imminent. They rattled, burned oil and were cheap. Sort of like a Capitalist Trabant. Superceded by the Chevette, which is a car analgous to the East German Wartburg.

1981 Caddy -- or is it a Citation in disguise?

3. The J Body Cadillac Cimmaron -- This early 1980s model was a response to the 1979 oil shock and subsequent recession. GM decision-makers took a brand that was the standard of the industry and degraded it to such depths that Cadillac only recovered from this insult during the past 5 years. Old ladies drove this car in the 1980s, thinking it was their final luxury car. As it turned out, their last ride was in a Cadillac hearse, which remained of high quality only because undertakers would not settle for vehicles anything less than the best.

4. The HT-4100 Cadillac of the early 1980s. Another failure for Cadillac was due to the hasty introduction of an engine that could be run on either 4, 6, or 8 cylinders depending on the need to do so. It deactivated cylinders via solenoids, but overall was an engine that lacked power, and torque. The engine was thrashed in just keeping up with traffic, and consequently rod bearings failed and its coolant leaked.

5. The Pontiac Aztek -- some of its owners swear by these incredibly ugly vehicles. I just hope the owners posess a better appearance than their cars! Technology should be beautiful as well as functional. This "thing" looks like some sort of a mutant, altered by a burst of radiation.