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, by David Halberstam
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Product details
File Size: 6604 KB
Print Length: 763 pages
Publisher: Open Road Media (December 18, 2012)
Publication Date: December 18, 2012
Sold by: Amazon Digital Services LLC
Language: English
ASIN: B00AG8FZ4C
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The epilogue, which Halberstam didn't live to write, is that America's auto companies are now mostly subsidiaries or partners of Asian and/or European automakers. When they had a world monopoly on auto production in the 1940s-1960 they squandered time by starving development and innovation, preferring to milk existing factories, produce large, profitable and shoddy cars and banked the profits. The automakers were willing to give the unions above market wages to buy labor peace.Japan, on the other hand built an entire industry from scratch, with both labor and management willing to sacrifice in the present to assure the future. They also sought lessons from American experts (ignored by American management) on quality and production.How difficult the job was is explained in detail in the book, it makes fascinating and saddening reading.I grew up in the '50s and '60s. I remember when Volkswagen burst on the scene with the Beetle, an inexpensive and well built small car. In contrast to the American offerings (huge boats on wheels with a ride like sitting on a couch), the new foreign cars were fun to drive and most importantly, mostly well built. That was the last opportunity for American manufacturers to wise up and build better cars. Instead they pursued government trade restrictions, government subsides and protectionism to suck more money from aging facilities and processes.Robert McNamara at Ford, who later became US Secretary of Defense under Lyndon Johnson, epitomizes the bean counters who drove the industry into the ground. He is most well known for insisting on the Vietnam Wars body count measure as a proxy for winning the war. That didn't turn out so well.This lesson is not unique to the auto industry. Similar books could be written about the steel industry, the shipping industry, and many others. You snooze you lose.
Very detailed history of Ford and Nissan from 1900 into the 1980's. The author has it right with his historical differences between union and corporate policies in American and Japanese auto industries, along with cultural differences between the two countries. Probably the most interesting is the union histories in the two countries and oil price manipulation from Middle East and resultant chaos. He attempts to make sense of the reasons that Japanese cars overtook American cars in quality, reliability and value when Ford and GM had such a massive head start. He accomplishes some of that and is very interesting reading but gets bogged down in repetitive details and seems to have a vendetta against Ford. Or, maybe Ford's management was more interesting because of personality quirks, unlike the others. GM, Chrysler, and Japanese management had huge problems, but Ford's were unique because the family had such leverage. Ford had a huge lead against GM also and Henry blew that all by himself. Still, GM and Chrysler management failures played a big part in the automotive disasters of the 70's and 80's, along with union complicity. This book is dated, much has changed since the 1980's, it needs to be updated, much can be deleted or better analyzed.
The late David Halberstam did a fine job of telling the rise and demise of the U.S. automotive industrial base in The Reckoning. Henry Ford, industrial might, WW2, unions, oil, oil embargoes, Detroit, Japan, Korea, junk bonds, leveraged buy outs, protectionism, and so on. Told in terms of personalities and contributions of big Ford, Nissan, and UAW players it makes compelling reading. The book was published in 1986, South Korea was then the emerging industrial might, and gigantic China was barely on the horizon. The essence of The Reckoning is profitable but destructive loss of industrial capacity. Highly recommended reading.
Halberstam's " The Reckoning " lays out almost a century of history of the auto industry starting in the US with Henry Ford and also tracking in parallel the emergence and evolution of the Japanese auto industry. Most interesting was the transition at Ford from an extremely entrepreneurial company at the turn of the 20th century to a strictly financially driven company after the Ford IPO. Share price, quarterly earnings and cost cutting ruled the day post World War II impacting quality of product. At the same time Nissan, Toyota and Honda were working extremely hard to enter the US auto market with higher quality cars. Detroit's response was cost cutting and arrogance which placed Ford and Chrysler in dire financial straits. Those are just a few points made in the book which explain how Detroit fiddled during the late 70's and 80's. Beyond that the author lays out multiple market dynamics with which the US auto companies struggled while the Japanese handled the same dynamics with aplomb. This is a very interesting book with the typical Halberstam thoroughness which leaves no stone unturned.
David Halberstam was the greatest non-fiction author of his generation and this book is a masterpiece. If you want to have an idea where the US manufacturing expertise went, this book is a good start. Honestly, the first chapter explains far too much of how we decided to hand off the hard work of making things in exchange for the pointless, easy, and shortsighted finance and bankster hustle. I recently toured the Ford Museum in Dearborn, MI. The Ford propaganda is a lot funnier with "The Reckoning" as a background. Henry gets a lot of credit for ideas, work, and products that his far more talented employees did. Like most robber barons, he was incredibly lucky and almost any twist of fate could have put him and his cars in the history basket with Whippet and the host of industrial losers.
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