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American Auto Makers Have to Change - So Do We!

The past few weeks have presented nothing relentless in the pursuit of economies,
but bad news for the formerly world creativity and changing cumbersome
leading American automobile industry. bureaucratic business cultures.Change is
Henry Ford must be rolling over in his short-term pain. Managers will be
tomb. Alfred Sloan, the architect of the significantly fewer. Blue-collar workers
multi-division General Motors juggernaut, will not earn $65,000 plus per year for
is a very sad "car guy" in the sky these unskilled labor in new jobs. Communities
days. Plant closings, huge employee will undergo brisk changes in tax
layoffs, lost market share and horrid revenues, real estate prices and shopping
fiscal performance indicate that the "big patterns. College plans will be upset.
three" (including Daimler-Chrysler) are Retirement dreams will be delayed, in
in big trouble. They must change, and some cases destroyed. Parts suppliers
change is not pleasant for huge business will be pressed on pricing. And yet, the
complexes, or for employees, suppliers or future for all effected parties can, and
customers.This brings to mind a change should, be bright.Since the Luddites in
that occurred right before my eyes as a the mid-19th century attempted to stop
small boy growing up in Kentucky. Several the industrial revolution and preserve
times each week, a horse drawn ice wagon old-world work models, there have been
would pull up in front of our little groups trying to thwart progress.
house and deliver block ice. The iceman Progress requires change. Fortunately,
was named Herb. My mother would always looking in the rear view mirror is not a
pleasantly greet Herb and they would widely admired American trait. The
exchange small talk, how about that the parties most effected by this sea change
Reds game last night or the nice weather in the American auto business have
we were enjoying. Herb was a hard working multiple opportunities to re-train,
and very nice man. And then, one day this re-strategize, and start new businesses
regular ritual in our lives abruptly and services. With normal American drive,
ended.My parents bought a refrigerator. work and creativity our society will be
The hand delivered block ice that was blessed with a new generation of wealth
essential to keep the old icebox cool was creation, entrepreneurs and growth. It
no longer needed. My mother was very has always been so.We live in a global
concerned about the effect our new wonder market place. Nothing will change that.
appliance would have on Herb. She met him If foreign auto companies make better
in the yard and told him as gently as products at a better price we have to
possible that his ice deliveries were no confront, and overcome, these market
longer needed. Then she asked him if he realities. Americans always have in the
would like some iced tea and to sit a past, and there is no reason not to
minute.As clearly as I remember anything foresee a bright, but different future,
in my youth, I remember that for every current participant involved in
conversation. Herb knew the inevitable the radical restructuring of our formerly
march of progress and technology; in this great auto business.The American economy
case a 12 cubic foot Frigidaire, meant is the most dynamic in history.
that he was soon to be looking for Opportunity abounds and is available to
another line of work. It was sad. He was every citizen willing to compete in the
very matter of fact and my mother tried marketplace of ideas, work hard and not
to be encouraging. Over the next few look backwards. Ford, Chrysler and GM can
months we saw Herb in the neighborhood survive and prosper. Nevertheless,
less and less. Within six months the ice understanding and preparing for change
Company was out of business.Accept Change will separate the successful from the
or Get Run OverLike the barrel industry, losers, or modern day Luddites.Geoff
the bicycle industry or dozens of other Ficke is President of Duquesa Marketing,
formerly thriving business segments, the Inc. an international consulting firm
ice delivery service, and now the with over 35 years experience in creating
American automobile industry was forced customized strategies and business plans,
to change business models. If change were product development and funding
not embraced, indeed aggressively opportunities for entrepreneurs,
pursued, industry subsets would be inventors and small business expansion.
superceded by new upstarts and Mr. Ficke is also a Senior Fellow at the
technologies. "The Big Three" still have Page Center for Entrepreneurial Study at
an opportunity to adjust to new market the Business School, Miami University,
realities, but they will have to be Oxford, Ohio.




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