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Hi folks -- One area that I am focusing my current studies on closely examines the period between the middle 1960s and the early 1970s. For some time now I have intuitively sensed from my reading that it was then that some major changes took place within the auto industry that sowed seeds for the present-day crisis. And I think a key player in this episode is GM executive Frederic Donner, who began to shift finance experts into the area of operations. In fairness to Donner, however, GM, and the other manufacturers of automobiles during the 1960s, began to experience the instability brought on by inflation, environmental concerns (especially air quality), consumerism, and safety. In response to these pressures, GM's upper level management shifted away from the decentralization derived from Sloanism to what was terms "Coordinated Control." Excerpts from a 1970 article in Business Week describes this new management system:
Donner explained that “Centralization means you are bringing into one level the operating decisions of the company.Coordinated control means that where policies have to be determined…you would have coordination” among operating units.
The most visible and dramatic illustrations of change are an emphasis on using many common parts in all the car lines and the direction financial analysis is evolving.Until the 1960s, finance and operations executives were separated, with little cross-over.
Thomas A. Murphy, who was treasurer when in the spring of 1969 he was placed in charge of the car and truck group.His job was to do a financial analysis of the operating side, and to get maximum commonality of parts among the car divisions.
As Ed Cole stated, a nail’s a nail.”
Under a program initiated in 1964, but given high priority in 1966, each division is given long-range design responsibility for an area of a car. Buick is responsible for brakes, Cadillac for parts that affect the driver’s vision, Pontiac for carburetion, and all suspensions for 1971 in 1971 models will be designed by Chevrolet.
From:
Mighty GM Faces its Critics,” Business Week, July 11, 1970, 72-73.
In sum, the distinction among the GM brands became blurred, and Brand value was ultimately diminished. Alfred P. Sloan's marketing strategy of a"car for every purse and purpose" was modified to meet modern complexities, but in the process its elegant simplicity, and that inherent power, was significantly diminished.
Hi folks -- what follows is the proof page of a session that will be held in San Diego at the American Historical Association Annual Meeting on January, 9, 2010. All of the presenters have written books that are at the very cutting edge of automotive history, and I heartily recommend that you get copies of their books for late summer reading.
185. New Directions in the History of the Automobile in America
Co-Sponsor(s): Society of Automotive Historians
Chair: John A. Heitmann, University of Dayton Papers:
"The Other Shop Floor: Automobile Maintenance and New Perspectives on Twentieth-Century American History," Kevin L. Borg, James Madison University.
"Americans and Automobiles: Still an Open Road,"Tom M. McCarthy, U.S. Naval Academy.
"I Could Not Travel Both: Automotive Risk, Safety Reform, and the American Love Affair," David P. Blanke, Texas A&M University at Corpus Christi.
Comment: Rebecca Morales, San Diego Center for Algae Biotechnology.
Hi folks -- I can't think of anything more American than the summer cruise-in. Held in many communities -- in commercial and church parking lots and public parks -- these events are as much a social gathering as they are a showcase for one's special automobile. And the crowd at the local cruise-in in Kettering cuts across racial and class lines. you can talk to the pompous ass who owns a 1970 Lotus Europa, or the humble old man who restored a 1953 Ford pickup powered by the last year of the flathead V-8. The cars range from old to new, from GM 50s and 60s to European makes that include BMW, Jaguar, and Porsche. Most the the people who attend are just good, down to earth Americans from all walks of life, who share one thing in common -- a love for the car, restored, original, a rust bucket or even rat rod.
Hi folks, I recently received a well thought out comment from a former student of mine who has worked for Ford Motor Company for quite some time. What follows is his email:
Hello ProfesorHeitmann. I'm a UD alumni who took your excellent History of Science class back in 1988, and wanted to comment on your recent comments/insights on the automotive industry.
For most of my career I've worked at Ford Motor Company as a purchasing manager for various electronic systems and advanced vehicle technologies. I agree with many of your comments re: industry leadership, vision, management changes needed etc. However, as you know, Japanese/Korean/German OEM's are heavily subsidized by their governments -- both indirectly through universal health care to workers and directly in advanced battery research, hybrid technologies, etc. (e.g. Japanese MITI is extremely active in funding Toyota directly.) We cannot make apples-to-apples comparisons between Toyota and GM/Ford without at least considering the overall context, culture and philosophies governing each OEM's business strategy and constraints.
The solutions must include strong government/industry partnership and vision like we have for the defense industry. Would anyone disagree the U.S. leads the world in defense systems? Why do we lead here? ..because we decided to and mobilized government, industry and academia on common goals, projects, and investments. Other nations are beating us in automotive by applying our own integrated and holistic approach to defense industry planning. Laissezfaire capitalism and CEO changes alone are not the answer. Other nations are integrating the best of all philosophies - lest I say some degree of socialism - to optimize the welfare of their automotive industries.
John Coyne BEE, 1988
I responded to John by stating that my seven weeks in Germany convinced me that government involvement in the industry is not a bad thing, if the culture is such that the organizational linkages function efficiently and that creativity and the entrepreneurial spirit is fostered. In Germany for example, the head of the Cluster for East Germany automobile manufacturing spoke to us while we were at BMW, and it was clear that the various companies with manufacturing facilities in the former GDR were working together on issues of suppliers and labor. But German mentalities are quite different from those in the U.S., and thus I am concerned about how the government involves itself in the operations of the Detroit Three. I still believe that it is wrong to look to government for answers to major problems, and indeed it can often function as an institution to create and perpetuate problems rather than solve them. And the folks who are engaged in the defense industry, by all accounts, tend to be quite different than the rest of government in terms of social philosophy.
My thanks to Ed Garten for forwarding me this news on Geely's interest in acquiring Volvo from Ford -- taken from today's Wall Street Journal:
Today's Wall Street Journal has a front page story regarding the rapid rise of China's Geely Holding automobile company and its bid to, within a few years, become a major world automotive player. Geely has been trying to buy Volvo away from Ford now for about three years -- mainly they want the safety technology and engineering expertise plus it seems that Chinese people not only want Buicks, but they want Volvos.
Geely Chairman Li Shufu has thus far refused to discuss his plans for Volvo publicly, but in recent interviews he has been "coy" about his interest in the Swedish auto maker by saying:
"Volvo is like a mysterious, beautiful Swedish woman. We just look at her from far away, amazed. We don't dare get close to her. We are just
a bunch of farm boys."
And I thought Southerners were the masters of understatement! Recently, China surpassed the United States as the world's largest consumers of automobiles. The Chinese are no longer content to play second fiddle to the Americans, Europeans, Japanese, or Koreans. And why should they? BYD had a most impressive display at this year's Detroit Auto Show, with their plug-in hybrid. And Brilliant showed up with a BMW clone that is a testimony to the Chinese taking what they want from the Germans and then saying goodbye. Farmers can be very shrewd people! History is replete with examples of how the underdeveloped outsider emerged as an industrial leader due to cheap labor, good business practices, and ample resources. The Chinese may write the next several chapters in automobile history, if Detroit and others are not careful. Remember, we laughed when they started supplying McDonalds with the Happy Meal Toys!
The GTO remains even today synonymous with American muscle, even if it is Australian by birth, as evidenced by the enormous interest and following over the 2003 – 2006 remakes.The Mustang, however, is purely American, and its long run as the iconic sporty, sometimes muscle car continues to this day, despite the inevitable ups and downs since the fall of 1964.It is truly an egalitarian, classless vehicle, as well, appropriate to the American scene, meaning that both a corporation CEO and a blue collar stiff can drive a Mustang GT, and respect each other for doing so.There is no snob appeal among Mustang owners, at least not GT and performance grade (read Shelby) followers. Its most iconic model is the 1965 with a 289 cubic inch V-8.With each and every year to 1973 the Mustang became heavier and fatter-looking, although big block engines compensated for the weight, culminating with the 429 Cobra Jet.In 1974, in response to the first energy crisis, the Mustang II was introduced, a wrong turn in terms of quality and performance.Some of the early 1980s Mustangs were simply horrible cars, but the 1989-1993 design marked a clear resurgence that continues today with the eager anticipation over the release of the 2010 version.
Lee Iacocca is often given credit for the marketing insights that led to the Ford Mustang, yet, as Iacocca recounts in his autobiography, the Mustang story was far more complex than simply tracing it to the genius of one executive. The idea behind the car was conceived by Gene Bordinat, Ford’s Vice President of design, and Don DeLaRossa Ford’s chief of advanced design. Yet, Iaccocca will always be known as the father of the Mustang.
On April 13, 1964, the Mustang was born, unveiled by Lee Iacocca to the international press at the New York World’s Fair. It was an event described by one journalist as “the most sensational introduction of modern times.”Car and Driver proclaimed that the Mustang was “the best thing to come out of Dearborn since the 1932 V-8 Model B Roadster.”Named after the P-51 fighter, and not the wild horse, it became an instant success with an American public increasingly obsessed with things associated with youth.Within two weeks of its debut 22,000 units were sold, and by 1966 sales totaled over 1 million.
One key to the Mustang’s popularity was the possibility to reflect an owner’s personality by accessorization.The culmination of the strategies first formulated by Ford’s Lewis Crusoe in the 1950s, accessorization enabled Lee Iacocca and Ford marketing to take a car that was based on the stogy Ford Falcon and dress it up in an unprecedented way. A customer could purchase on of seven 1965 Mustang models, including a coupe, convertible, fastback and GT-350 fastback.The first three came with either an inline 6 or a V-8 engine. The Mustang’s price range started at $2,368 for a “sweet six cylinder,” and peaked at $4,547 for the GT-350.Iacocca “took a basic car and added bells and whistles … quick and easy options that not only added to the car’s appeal but put profit in both the dealer’s and the manufacturer’s pockets.”
The success of the Mustang was the result of more than just a product that was precisely what consumers wanted.It was advertised heavily after launch, as it was featured in over 2600 newspapers and 24 magazines, as well as the chief sponsor of three television shows.Before long, every American household was aware of the new car.And by Christmas of 1964 the Mustang was a popular toy.One popular toy was the Mustang Pedal Car, made by American Machine and Foundry (AMF).AMF paid for “full paged ads in at least a half a dozen major magazines…also enticing mom and dad to put themselves behind the wheel of a somewhat larger, fossil-fuel-fired ponycar convertible.” There were also metal and plastic models, some battery-powered with working headlights, taillights and instrument panels.
Since 1965 the Mustang has been in over 200 spy, action and comedy films.Its’ first film debut was less than six months after its public unveiling, as it appeared in the James Bond film Goldfinger.While James, played by Sean Connery, is driving his DB-5, he playfully obstructs a white Mustang convertible, driven by an extremely attractive young woman.Yet the Mustang’s appearance is brief, as its tire is shredded by a DB-5 countermeasure.InThunderball, a 1966 Mustang was used, and in similar fashion, the 1971 thriller Diamonds are Forever featured a fastback Mach I.Other films that featured Mustangs include Bullitt, Gone in Sixty Seconds (both the 1974 and1998 versions), The Thomas Crown Affair,The Fast and Furious: Tokyo Drift, 2 Fast 2 Furious, Charlie’s Angels, Cape Fear,Bull Durham, Hollywood Homicide, and Death Match.
Mustangs had influence on music as well as film. And the most popular of all Mustang songs was Wilson Pickett’s “Mustang Sally.” Produced by Jerry Wexler, Pickett recorded the song at Fame Studios in Muscle Shoals, Alabama in 1966.It became an instant classic, rising to 23 on the Billboard Pop Chart.The song was about Sally, who only wanted to drive her 1965 Mustang all around town, which was bought for her by the singer.As the chorus reminded the listener,, “all she wants to do is ride around Sally, ride, Sally, Ride.”Originally composed by Mack Rice with the title “Mustang Momma,” it was changed to Mustang Sally on the suggestion of Aretha Franklin. Interestingly, the chorus came from a children’s song chorus “rise, Sally rise,” that Rice enjoyed as a child while growing up in Clarksdale, Mississippi.
What is so important about the Mustang, however, was that despite its phenomenal initial sales, Ford’s overall market share remained nearly the same. Thus, what the Mustang did was take buyers away from other Ford product lines, rather than from GM, Chrysler, or the imports.
Hi folks -- big event featuring GTOs and Pontiacs this weekend in Fairborn, Ohio, very near Dayton at the Nutter Center. The above photos show the progress of grill faces that Pontiacs had beginning in the late 1920s and going to the near present day GTO of 2004-6. I have to say that given the tremendous product loyalty that was demonstrated today in the huge turn-out for this event, GM chose the wrong brand to eliminate. Buicks are for old folks. Who wants to buy a Buick so that everybody knows you are old? I doubt the boomer generation wants to admit that sad but inevitable fact of life. An article that appeared on MSNBC.com July 6 featured the work of Dennis Slice, shape analysis researcher and professor at Florida State University. Slice, and co-workers at the University of Vienna, have examined the frontal shapes of automobiles, and are hoping that "their work one day may help designers determine what parts of a car, such as the headlights, grille or windshield, they can change — and how — to project traits that make cars more appealing to different kinds of customers." For Slice and his colleagues, some cars project strong masculinity and aggressiveness, while others reflect innocence or submissiveness. What do the Pontiacs shown above convey to you about their owners, past and present?
