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Posted

Japanese company (Toyota ) and an American company (General Motors)

decided to have a canoe race on the Missouri River. Both teams practiced long

and hard to reach their peak performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate

the reason for the crushing defeat. A management team made up of senior

management was formed to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people rowing and 1

person steering,! while the American team had 8 people steering and 1

person rowing.

Feeling a deeper study was in order, American management hired a

consulting company and paid them a large amount of money for a second opinion.

They advised, of course, that too many people were steering the boat, while

not enough people were rowing.

Not sure of how to utilize that information, but wanting to prevent

another loss to the Japanese, the rowing team's management structure was

totally reorganized to 4 steering supervisors, 3 area steering superintendents

and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 1

person

rowing the boat greater incentive to work harder. It was called the

"Rowing Team Quality First Program," with meetings, dinners, and free pens for

the rower. There was discussion of getting new paddles, canoes and other

equipment, extra vacation days for practices, and bonuses.

The next year the Japanese won by two miles.

Humiliated, the American management laid off the rower for poor

performance, halted development of a new canoe, sold the paddles, and canceled all

capital investments for new equipment. The money saved was distributed

to the Senior Executives as bonuses and the next year's racing team was

out-sourced to India.

Sad, but oh so true! But consider this: Ford has spent the last thirty

years moving most of its factories out of the US, claiming they can't make money

paying American wages. Toyota has spent the last thirty years building

more than a dozen plants inside the US. The last quarter's results: Toyota

makes 4 billion in profits while Ford racked up 9 billion in losses. Ford

folks are still scratching their heads!

Posted

Gents,

Something that was big news in the auto industry during the 60's and 70's and now seemingly forgotten is that General Motors poured billions into Toyota and lifted them from being "just another car company" into what they are today. In fact, Toyota's buzz-word for them was "Generous Motors". I've not been able to learn how much of Toyota GM owns, but you can bet they've got a finger in that pie.

The question in my mind is, why do they run their domestic operations in such a slip-shod manner when they have a shining example of the correct way of doing it right under their corporate nose? Perhaps that they don't need to pay taxes on their foriegn earnings, combined with tax cuts they get from losing money at home, gets them a larger bottom line?

Avarice, sweet avarice, GM is thy name. What ya say, boys, screw the domestic economy so long as the Country Club membership is complementary?

-Randy

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