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Sunday, April 18, 2004

More from DeLorean

I've always been a fan of DeLorean, though he's definitely someone who has rubbed a lot of people the wrong way. I can understand that. He's an arrogant man, but he's a very intelligent man. He may not be the greatest auto executive of the second half of the 20th century, but he is the most famous. From his influence at Pontiac, to his creation of the DeLorean sports car, his name was in the papers.

Here's a quote from his book "On a Clear Day you Can See General Motors".

Chevrolet's quality problems were due as much to the use of cheaper parts amd material as they were to outright product defects. Under pressure from the corporation to increase or stabilize its falling profit margins, Chevrolet management, from about the mid-1960s on, had taken quality out of its products as a cost cutting measure. Some of this cost-cutting was in highly visible areas such as the interior appointments, exterior trim and size of tires. This directly affected the customer's perception of Chevrolet, how he felt inside the car, or how it rode. This quality cutting eventually caught up with Chevrolet. The resale value of its products dropped as did its sales increases relative to the rest of the industry.

Has anything changed? It's certainly the way things are done at GM to this day, though there is a climate of change. Companies desperate for profit make moves like this from the beginning, what bothers me is when profitable companies do it. So remember, don't buy a car that looks bad, no matter how cheap it is. You lose in the long run from the resale value.

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