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Automotive Industry

LETTERS

Automotive Industries, Feb, 2001

Green Machines, Price and Quality

It's high time you guys in Michigan started writing about the revolutionary new power sources coming for cars and trucks! Your story on the fuel cell vehicles is an important read. As I write this letter (January 20), I'm hoping my home's electricity doesn't shut off like it's been doing all week. Here in California we're already seeing the future of "traditional" energy sources -- it's called a blackout. We can all do better, and the auto industry can help lead the way.

Peter Sabrino

Powerware, Inc.

Santa Rosa, CA

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Actually, Peter, Automotive Industries has been writing about all the new powertrain technologies -- particularly hybrid-electrics and fuel cells -- as long as anybody in automotive publishing. E-mail me in our Detroit office for copies of past articles. -- ed.

GM Thinks Small

Regarding Ron Harbour's January opinion page: For a company that developed the marketing progression of customers from Chevy to Caddy, GM has been very negligent in following its own philosophy. Does anyone at GM really have any idea how many Cavalier buyers buy a Honda Civic or Toyota Corolla the next purchase?

We've seen it over and over -- enough to recommend to Toyota and Honda dealers to get listings of first-time Cavalier owners to assist their sales.

GM doesn't have enough customers coming up the progression. Any comparison between Civics/Corollas, etc., makes the Cavalier look like it was made in a Third World country. Glad to see GM at least catching sight of the market it established -- but is it too late?

via email

Price vs. Quality

Andy Cummins' December column was great! Something DOES have to give! The best solution for suppliers is to be proactive and ensure that business practices focus on customer service, quality, lean manufacturing -- and have the data to prove it! Show your customer how you ensure minimal waste exists in your facility. Discipline yourself before your customer has the opportunity to FORCE you to be hard on yourself.

Customers who care about their suppliers will recognize excellent business practices, provided there is objective evidence of the results. If they don't care about the suppliers, there is no hope and something will give.

Bruce Thornby

via email

My company, a third tier supplier of of extruded air bag components, was on the leading edge of extruded air bags during the 1980s and enjoyed fantastic growth and profits during those early years. Now a completed module supplied by the Tier 2s has become commonplace -- with no profit. And the price of airbags charged by the auto companies has remained the same.

Who is getting the profits? Definitely not us. In fact, we now must supply more product, at a cheaper price with superior quality. Either we go out of business or work hard to get away from this price-driven marketplace. Either way, the supplier base is reduced. The day is fast approaching when there will be no players to "giveback."

Name withheld by request

As a production supervisor at a Tier 1 auto supplier (HVAC systems), I agree 100 percent with your article. In the efforts to meet the five percent reduction in cost, as demanded by Chrysler and GM this year, along with the cuts in our own budgets internally, I often wonder how anyone can believe that quality is still Job 1.

Craig Grable

via email

Somebody in my office (a Tier 1 supplier) passed around Andrew Cummins' December column. The consensus is: Right on! The customer is constantly after us for more givebacks.

Lowest price wins, that is the mentality. Wheels are being sourced around the globe for North American consumption, on price. What will happen if one of these off-shore companies runs into supply problems? There is no plan, no idea of how this will be overcome. Short-term, bottom-line thinking is all that seems to matter. Absolutely zero concern for the supplier. Oh sure, they talk about loyalty. It exists as long as the defending supplier has the lowest price!

Name withheld by request

I couldn't agree more with Andrew Cummins' article. The "customer" has changed the automobile business into a "search for money." With everyone searching for money, the eye has been taken off the pursuit of operational excellence, resulting in a (expected) decline in quality. I can only believe it will get much worse before getting better.

Jim Wachowski

Rochester Hills, MI

Automotive Industry

LETTERS

Automotive Industries, Feb, 2001

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