Originally posted by: mAdD INDIAN
You guys should check out
CAR: Drama of the American Workplace by Mary Walton
It chronicles the development of the 1996 Ford Taurus, which was the successor to the wildly successful first generation Taurus that was released in 1989 (I think?).
The book really portrayed the beaucracy and cheapness that was inherent in Ford's management as well as insight into why they slid down that slippery slope of quality.
For example, while Japanese automakers have a very close & tight relationship with their suppliers, by having long term contracts with them and enforcing stringent quality requirements. But at the same time, they garanauteed that the supplier would be supplying them with parts for the entire generation of that particular model.
Ford, and GM for that matter, chose a different route. They would try to get parts for the lowest cost, so they would let the supplies bid amongst themselves for contracts that would only last a year or two, and then try to get them to compete amongst themselves for a lower price bid.
Clearly this would result in cheaper quality for a few reasons, mainly, the suppliers aren't garaunteed to produce these parts for 5 years, so they no reason to invest into upgrading their toolings & machinery since they know they won't produce the parts in enough volume to drive down the costs & get a pay off on their investments. Also if they are only producing parts for a few years they won't have time to improve and refine their processes either, which result in better quality parts.
This is just a small, yet powerful, example of why Ford & others are in deep trouble simply because they looked at the short term financial gain over long term strategy. However, it looks like that is changing, which can only be a good thing.