Friday, September 15, 2006

Weenie of the Week - Buzz Hargrove

It's been awhile since I have nominated a Weenie of the Week, but listening to Buzz Hargrove today on AM 640, I can't help but give the honor to him.

Buzz thinks that the reason NA automakers are cutting back, is because of the lack of import restrictions. Figures a union guy would say that. There are a number of reasons that the former Big 3 are slashing their workforces, and its not because of a deluge of imports. Need we remind Buzz that the imports are no longer imports, with Toyota and Honda building more cars here with NA content than ever before. Toyota is non-union, but I digress...


1) The Big 3 do not build the cars that people want. Chrysler has a few hits, but they tend to take more chances with their designs than the other 2. Cadillac turned around, because they overcame the design monkey on their backs, and created something the consumer wanted...bold style.


2) Quality and reliability is key - the current public opinion is that imports have better quality, and in some cases, they do. Its not enough for the Big 3 to point to improved quality and reliability if you are still trying to sell a car that doesn't appeal to the masses. If Cadillac's quality was better than Toyota, I bet they would see improved results. When GM and Ford can produce a vehicle that lasts and is not a drain on the pocketbook for maintenance, they will start to win back the consumer. Longer warranty periods are the best chance to get a step in the right direction. Playing catch up only prolongs the pain. When GM and Ford start to learn to be proactive, instead of reactive, then their fortunes will turn around.


3) Union shop = Lack of Care and Craftmanship - I can't stress enough, that today's unions are working off past contracts and their rewards as entitlements, rather than sharing in the risk and reward. Unions today, make companies look at the people as a commodity, rather than an important piece of the manufacturing puzzle. When the unions decide to get off their high horses, and realize that they are not entitled to continue to live off the past, the better the Big 3 will be. All union companies have drifted this way, and they create the cycle to which the companies can't escape. Thanks to people like Buzz, this perpetuates the belief that workers can turn the screws on the companies, and we all know that the end result is layoffs. Job creation within union management, thats all unions do. The day that unions get with it, and adapt to the change in manufacturing and markets, the better. Risk has to be shared with everyone, including the unions...until they realize this, more bad news is on the way.


Unions had a place years ago, to protect the worker...they are now a detriment, and non-union companies are adapting and surviving at a better rate. For his ignorance in economics and narrow vision, Buzz Hargrove is the Weenie of the Week.

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