JHZR2
Staff member
Originally Posted By: DrRoughneck
Let's be honest for a second and look at the problem:
The main difference is:
- When a US car company turns a profit, stockholders are happy and the board votes to pay out multi-million bonuses to top management. It doesn't matter if the cars are produced offshore or not as long as management gets its million dollar bonus. These millions could be used to engineer better car but they end up paid out to top managers instead. They often skimp on parts and use cheaper foreign parts to maximize profits.
- By contrast Japanese executives do not receive nearly as big of bonuses. Instead Japanese car companies re-invest profits in engineering and testing. They end up with safer, better cars that cost about the same price as US cars but last longer and use better (American-made) parts.
US car companies could make cars of equal quality to Japanese companies if they adopted the same priorities. However their current priorities, to mazimize management bonuses, goes against that objective.
Well said. There are times where there is skill to harness, which deserves a fat profit; then there's treacherous moves pulling the rug out from others.
Let's be honest for a second and look at the problem:
The main difference is:
- When a US car company turns a profit, stockholders are happy and the board votes to pay out multi-million bonuses to top management. It doesn't matter if the cars are produced offshore or not as long as management gets its million dollar bonus. These millions could be used to engineer better car but they end up paid out to top managers instead. They often skimp on parts and use cheaper foreign parts to maximize profits.
- By contrast Japanese executives do not receive nearly as big of bonuses. Instead Japanese car companies re-invest profits in engineering and testing. They end up with safer, better cars that cost about the same price as US cars but last longer and use better (American-made) parts.
US car companies could make cars of equal quality to Japanese companies if they adopted the same priorities. However their current priorities, to mazimize management bonuses, goes against that objective.
Well said. There are times where there is skill to harness, which deserves a fat profit; then there's treacherous moves pulling the rug out from others.