Car makers: Why can't they understand it's all about long-term quality?

I see that the former embattled head of Home Depot, Robert Nardelli, has been named head of newly-private Chrysler Corp.

According to one report, Mr. Nardelli wants to move faster on a turnaround plan announced back in February.

I know this suggestion may come as a stunning revelation to those in the so-called "Big Three" automakers, but given that Mr. Nardelli is new to the industry, I thought I'd let him know what the problem is.

Some 40 years after the "invasion" of the Asian car makers, the reason for the decline in the Big Three market share:

1. isn't because they lack some fine-looking vehicles;



2. isn't because the vehicles cost too much money (because they usually cost less than the "Japanese" vehicles);



3. isn't because they don't win some JD Power "initial quality awards";



4. isn't because the American or Canadian worker is lazy or no good (lots of "Japanese" vehicles are made in the USA and Canada).

No, the reason for the decline isn't any of those reasons - it's because of the crappy long-term quality and reliability issues. People are tired of buying junk. I mean when you hear (as I have) of five, yes, five, automatic transmissions in a Chrysler mini-van (yes, driven by the sedate mini-van crowd) frying before the warranty expires, you've got to ask yourself, why? Why would I ever buy this junk again?

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So with the aforementioned in mind, I've prepared a list of the top three tasks for Mr. N over the next five years:

1. Improve the long-term quality and reliability of Chrysler products as much as possible in the next 1-2 years;



2. Seriously improve the long-term quality and reliability of Chrysler products as much as possible in the next 3-4 years;



3. Improve the long-term quality and reliability of Chrysler products to begin truly competing with the best "Asian" vehicles over the next 5-10 years;

There - that's it - the "magic" formula for success - but why do I feel that this is just futile even mentioning it?



JW

The Confused Capitalist