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Quality Issues on the Auto Industry

Ford did, however, introduce the process into its European production, because competition did demand it (p. 499). Ford's, and Iacocca's, arrogance toward quality and the North American consumer was not shared by all automobile manufacturers. The Japanese automobile manufacturers and General Motors paid Ford a royalty to incorporate the Ecoat process into their production. By the mid1970s, Ford had introduced the process into only about onehalf of the company's North American production plants (pp. 500-501). The process was introduced into the last of ford's North American plants only in 1984.

A sign throughout the American automobile manufacturing industry of the downgrading of product quality was managerial salaries. A production manager could expect to spend years reaching the middlemanagement level, and, in the early1980s, could expect an average annual salary of about $40,000. By contrast, a good financial manager could expect rapid advancement to executivelist level, where total compensation would likely exceed $150,000 annually (Halberstam, 1986, p. 501).

By the early1980s, product quality had become a major problem at all American automobile manufacturers, but especially so at Ford and Chrysler. Rather than initiating a quality improvement program, both Ford and Chrysler, now under Iacocca's leadership, sought, and received from the freetrade Reagan Administration, governmental protection from higher quality imports. General Motors opposed this governmental intervention. Their opposition was probably not so much based on a belief that the company's product quality would permit it to compete effectively with the Japanese, as it was on a desire to see domestic competition fatally crippled.

Ford and Chrysler are receiving accolades in the late1980s for their recoveries and successes (Halberstam, 1986, p. 643). In large part, the reason for both recovery and success lies in the realization...

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Quality Issues on the Auto Industry. (1969, December 31). In LotsofEssays.com. Retrieved 22:05, December 22, 2014, from http://www.collegetermpapers.com/viewpaper/1303359858.html
 
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