Unorthodoxneon
I would not in any way call it ignorance but consumer buying habits.
When I was in college, my econ prof was the automotive economy advisor for Blanchard (Michigan governor) and he told us a few things I later confirmed.
The Japanese car companies;
• under priced their cars to the point of a loss on each car to gain market share.
• built cars to their standards, not ours to make it a selling point. Their quality control system is more of cultural than it is business.
• did not have to deal with a union that was (is) against the company but rather with a union (yes they have unions) who worked with the company to the betterment of all involved. I think that they learned a lot just watching the attitude of the US worker and when I applied for an IT job at an Japanese supplier, I was asked directly if I worked for any US auto company because they felt that they a US autoworker could not be trained to their philosophy.
• decided that once they get a foot hold into the US market, they will eventually lower the quality to increase the profit because we are used to sub standard quality (this has been a well documented and subject to a bunch of SAE meetings). They're building plants here further eliminates cost for them and using US labor is somewhat cheaper than Japanese labor because of the flexibility of the workforce and their ability to dump the workforce in case of failure (sounds stupid but much of Japanese manufacturing has moved off shore).
• never had recalls on their products, ever until recently. To build a product and then to have a recall to fix something causes a loss of face with the company and they would not and can not tolerate that. When their cars were built in Japan, they would treat a problem as a serious thing. For example Toyota had a problem with corollas that was discovered during a quality check. The cars were built in Japan and shipped to the US by a ship. The problem was that these cars would land in the US in a couple days and needed to be fixed as soon as they hit the shores here in the US so not to delay their shipment to the customers. They chartered a plane and sent over 75 people, with tools and parts to the docks in California to fix the problem. Never mind that the cost to have 75 people with tools and parts just to fix the problem was a lot of money, but the cost was outrageous just to charter the plane illustrated their seriousness of their need to fix it instead of the dealer. The problem was the heater control was binding and they were not sure how many cars had the problem so they fix the entire production run instead. They no longer do anything like this because our expectation level is low in comparison to a Japanese consumer.
Knowing people at Ford, Nippondenso and a few other auto companies, I have been told repeatedly that the Japanese companies have lowered their standards since coming to our shore to reflect the American’s expected quality level.
So after 30 years of this stuff, the American car companies (the two remaining that is) has yet to learn from the Japanese companies. Ford for one has just gotten around to putting into their manufacturing system flexible manufacturing. It amazing me that both GM and Ford has not done this a while ago. Beside, I made a comment that they claim to reach into the past to move forward into the future. Well history for Ford was to lower the price of the car and control the dealer system closely to provide sales. They have had a large inventory, so I would say sell it near cost and get the dealer system together to get vehicles moving- it has been proven with other companies in the past (like 90 years ago) moving the product helps the stock price and attracts investors.
Oh well, I hear D-C people crying now about the layoffs so I am off to start my Mexican Dodge, later…