Ford had a better idea , and its not Mayor Ford of Toronto who is quite a news-maker in his own rite . One of these ideas is globalization of its automotive lines and products. Vehicles are often now “world cars“ , that is they are developed for world markets and driving conditions and laws not only just North America. It used to be that America ( USA, Canada and perhaps as an offshoot Mexico) were how the cars were made and designed for . If they liked the car in an another part of the world – say Saudi Arabia or Europe well that was a bonus to the big three automakers – like television reruns or selling tv series a year old to Australia. Its no longer North American roads and upper scale Cadillac drivers to make the mark .and head-office products.
On top of that old products – and even whole production lines and factories were often shipped “offshore” to serve foreign markets. Argentina getting a good but old Ford Falcon product is one example at hand.
Yet now products are designed for “world markets” across the globe. On top of that the parts and components – since the vehicles are used and even made locally in differing countries can also be made across the globe. Advantages in terms of economies of sale and lower wage rates often are involved. It all helps at the end of the year whether its Toyota , GM ,Ford , Chrysler or any other auto maker. Hence your car may be international and made around the globe as well – not simply a “Detroit” USA made product. The world and international communication spins round and round. On top of that product development and innovation knows no borders .
Yet on the other hand sometimes products just don’t fly. Sometimes its cultural , sometimes its management and some of the time “who knows” ??? Yet management can not take a wholly “wait and see attitude” . Well at least not all the time . Ford did have a better idea but now its in China , Europe and other parts of Asia not just strictly for the domestic markets in the English language .
To that end its the role of management to make timely as well as prudent management decisions if “things just don’t work out ” and the whole operation – after a reasonable time period is ‘bleeding red” according to the accountants and bean counters or a given planned market share target is not met. Political as well as acts of nature may be a major part of the mix as well. Or it may be a case of resources – financial or management resources just being stretchered too wide and too far. Just look at Toyota;s debacle after the storm and resulting nuclear power plant issues as one example which reaches across the world and into the firm’s financial as well as auto sales volumes and support of product as well as “customer service” levels.
Management has to both innovative and forward looking , give the project a good and reasonable time and chance to grow – yet know when to pull the plug.
To this end its actually a positive sign of reactive management taking action rather than following the example of politicians of “kicking the can down the road“ that the executives of the Chevrolet division of General Motors made the decision of ending the sales from the Chevrolet division in Europe ”
“GM’s decision to correct what CEO Dan Akerson has called “the mistake” of pushing the bow-tie in the backyards of its Opel and Vauxhall brands also is something refreshingly new. It’s evidence that a post-bailout GM has the guts to admit what isn’t working, determine why and move decisively to fix it.”
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