As part of the agreements, General Motors promised to streamline the number of brands they manufacture. These firms also won agreements from the UAW union to help them delay contributions to a health trust fund for retirees and lessen the payments made to laid-off workers (Amadeo, par, 5)
The standards were established by the Environmental Protection Agency requires the United States auto fleet average 54.5 miles per gallon by 2025 (Eilperin par, 1)
According to analysis by an economic forecasting company, Chrysler's decline in sales by 53% in December 2008 could have only reduced by 30% if the company had more money to lend. At the time General Motors was requesting for bailout from the government, it had warned that it would fall below the minimum cash it needs for continual operations (Isidore, par, 28)
This helped to staunch the bleeding in the job market, to stabilize Rust Belt economies, and to bolster the President's popularity in Michigan and Ohio. In the last election, Michigan was not even in play and Ohio was won easily by the President, with exit polls showing that favorable sentiment towards the auto bailout (Cauchon, 2012)
The White House would preserve the pensions as well, which were at risk without a bailout (Reuters, 2009). Also cited was the need for leadership changes at the auto companies, something that was implemented quickly with the bailouts (Stolberg & Vlasic, 2009)
This viewpoint is oriented to the absolute of the ideology, where the President's approach was perhaps more pragmatic. In addition, another criticism held that bankruptcy is not a place to restructure companies, that the shareholders and bondholders were effectively cheated by this misuse of bankruptcy proceedings (Trudell, 2012)
As these were the problems that got GM and Chrysler into that position in the first place, the bailout would not solve the problem in the long run. Indeed GM is at risk of failure again according to some observers (Woodhill, 2012)
The ever-increasing number of new model releases and the urgency for faster technical innovation has shown several weaknesses in the industry which is required to be surmounted. (Bollig, 2002) According to a survey the most identified are as follows: (i) Right First Time: Top class component quality and readiness in production from the beginning of a new model
The Total Cost of Ownership -- TCO continues to remain the single most important factor while buying a reality which restricts the amount of thriving innovations within the auto industry. (Dannenberg; Burgard, n
Innovation management is supported through the application of Innovation Management tools which are normally web-based and helps them to go beyond conventional geographic barriers. (Das; Puri, 2003) Innovation Management systems are also able to generate structured processes for evaluation and sharing ideas, such that decision makers are able to target those who possess the maximum potential
Small wonder then, the suppliers also play a bigger role as innovators. (Maurer; Dietz, 2004) Research suggests that particularly in the sphere of electronics and mechatronics, the supplier community will come to be the most important drivers of innovation in the industry
From this stand point, the Chinese cars will fall under the category 42311, detailed on 423110 - Automobile and Other Motor Vehicle Merchant Wholesalers. These regulations have been installed starting with 2002 (Official Website of the North American Industry Classification System, 2008)
Both years 2005 and 2006 ended with a substantial decrease in sales, compared to the previous year, respectively 2004 and 2005. The decrease was of 600,000 units in 2005 as compared to 2004 and of 650,000 units in 2006 as compared to 2005 (DesRosiers, 2007)
But while Ford was innovative during its much earlier conception, as it was the first car manufacturing company ever to make effective use of the moving assembly line and interchangeable parts, it has been criticized for a lack of attention to detail in recent years. "What bothers me at Ford these days is the product planning, which seems to be [in] complete chaos and confusion, as well as an inability to correct problems" in current models (Flint, 2005)
"What bothers me at Ford these days is the product planning, which seems to be [in] complete chaos and confusion, as well as an inability to correct problems" in current models (Flint, 2005). Rather than defect minimization and continual innovation and improvement, which resulted in the revolutionary Prius at Toyota, Ford tends to cling to tradition: "A recent Merrill Lynch report says Ford has replaced 15% of its vehicles a year, second-lowest in the industry to GM's 14%" (Mayne, 2005)
In completing an analysis of the knowledge management best practices in the automotive industry, several key concepts serve as the framework of this research effort. First and foremost, there is a growing recognition that the processes and approaches companies rely on for ensuring knowledge management transforms their and their supplier organizations is a lasting competitive advantage, and as a result the depth of academic research being completed in this area is expanding rapidly (Cohen & Levinthal, 1990; Teece et al
Third, the advent of voluntary learning teams and the development of problem solving teams as part of the Quality Assurance Division (QAD) specifically within Toyota set the foundation for knowledge management and the development of learning systems on a broader, more long-term scale. Fourth, the role of interfirm employee transfers, not so much practiced in westernized nations, but prevalent in Japan for both ensuring employment in the same industry and most importantly, the same supply chain, has a secondary effect of promoting stronger knowledge management integration strategies (Lincoln et al
, 1996; Dyer and Singh, 1996). Taking this network concept as the foundation of comparative analysis of innovation, it becomes clear that scholars are finding that the greater the level of integration between suppliers, manufacturers, customers, and channel partners, the greater the levels of innovation present in each organizations' products, processes, and services (Levinson & Asahi, 1996; March & Simon, 1958:188; Powell et
Note that this framework also includes support for Expert Network and Learning Management applications to also increase the level of best practices attainment in knowledge management. Figure 2: Knowledge Management Framework Source: (Murphy 4) Potential Future The implications of ECM frameworks specifically being created for the purpose of supporting knowledge management strategies must first begin at a very process-centric level, where the many sources of content and knowledge are aligned to organizational objectives
In short, best practices in automotive industry knowledge management arena is now exemplified by the development of networks of companies that learn from each other and from the many collaboration requirements of making their value chains work. Scholars have begun to move away from the specific firm or manufacturer as the center of analysis and expanding the focus of research to include the network of companies and their accumulated learning both from each other and from the tasks of ensuring collaboration (Powell et al