Why Do American Automakers Pay Millions to Consultants?

Do you ever wonder why companies like the Big Three US Automakers spend millions to tell them what they should obviously already know? They spend millions in consulting fees. Interestingly enough this topic became a rather charged debate recently in our Online Think Tank. We all know that the US Consumer wants cars that look cool, have good performance and do not use too much gasoline or fuel right? Yah, dah you say.

This is why last year alone Toyota captured an additional 10% market share and Ford announced losing 16 Billion? Ouch, hello! Why is this happening, why are both GM and Ford in a world of hurt? Didn’t they already learn this a few decades the prior? Now they are paying millions to consultants to re-learn what they already learned the hard way?

Last time after Charles Deming told them for free what should be done they did not listen, while the Japanese took him for his word and the Big Three paid twice. Datsun and Honda days sure showed Detroit back then and Toyota and Honda are doing it again now.

Amazing that the Big Three are learning the same lesson again as China sells franchises in NJ of an Chinese Automaker, which is actually partly owned by the Chinese Army, meaning you buy a fuel efficient Chinese mini-SUV and the Treasure Fleet Sails Again only this time with nuclear submarines carrying anti-satellite weapons of course?

Admiral Zheng was a great man in Chinese History and his legacy is likely to rise again, China is surpassing the US Navy Fleet in number of ships as we speak. Why are the US Automakers not seeing the bigger picture here? What a disaster of inefficiency and hard lesson in failing to deliver to the customer what they desire at a price point competitive with the Free-Market?

Well, you are probably asking if I could do better? Yes, that is affirmative, but after paying out all that money to others, doubt they have much left actually. I hope this article will propel thought in 2007 and perhaps a re-bound for US Automakers by 2008