American Auto Makers Have to Change - So Do We!

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