The Automotive Industry: Progressing or Progressively Regressing?
Organizational letdowns in Automotive Technology
Detroit, MI, June 9, 2019
In recent news, we’ve heard of big Automakers such as Ford, FCA, & GM dealing with massive recalls and organizational downsizing. With recent governmental requirements on emission-free vehicles, there is more pressure on automakers to move toward manufacturing electrical vehicles. Auto companies such as Rivian & Tesla have pioneered this market, with pushes The Big Three Automakers to recalibrate their focus in automotive production. Quality Resolution Systems, an Organizational Change Management firm in Detroit, MI has been assertively observing the industry’s desperate approach to holding it’s stop spot.
From companies such as FCA dealing with botched mergers, lawsuits, and massive vehicle recalls all in 2019, it’s clear there is a need to try new methodologies to keep their horses in the race. With decreased sales in the China & European markets, there is an aggressive timeline to not only reduce workforce, but to win the race of pioneering automotive production. By the end of 2019, GM & Ford are looking to reduce workforce by over 20,000 employees between their organizations. But is their approach to achieving this goal feasible?
Let’s take a moment to consider a few things:
1. Old dogs seeking new tricks: Yes, we know The Big Three Automakers have been in business for over a century, but autonomous vehicles & electric vehicle technology is a new niche of focus they’ve yet to fully explore. Tesla & Rivian have taken years and years to develop this comprehensive technology, and Ford, FCA, and GM are newbies to that game. Downsizing white-collar positions (i.e Software Engineers, Designers, etc.) puts them behind the race, not ahead. Ford has taken initiative to delve into this new territory by partnering with start-up Rivian, but how well has this plan been thought out?
2. Slow & Steady wins this race: The price to stay afloat has been deemed very costly. With Trump’s recent tariffs on aluminum & steel imports, Ford & GM have considered vehicle production to China & Europe for top selling vehicles like the Explorer & Cadillac crossover. According to company Executives, the timeline to launch this production is 2020. Wow—ramping up production of new vehicle models in a new country within the next year? Is that even possible. There are so many risks to consider, but from a product development aspect, the APQP process for concept to product for tooling alone has not even been considered. Aggressive timelines keep up on our toes, but at the cost of safety, vehicle quality, and the cost of poor quality? That is not a recipe for profitability.
3. Protecting our Jewels: Our most value asset is our people. No organization has every succeeded by turning their backs on their employees. I get it. In an ever-changing market, there are times companies may have to downsize, but the numbers just don’t add up. Recently, GM published their profits have increased by 15% in 2018, yet, decided to stop production of an entire market of vehicles, shut down 5 plants in North America, and white-collar workforce by over 14,000 employees by 2019. So how could this organization possibly develop new automotive technology with a huge decrease in work force?
Kiara Thomas, CEO of QRS LLC says, “Sometimes when you’re in the trenches, you don’t see the light at the end of the tunnel. She further states, “With some employees fearing their jobs with be at risk by pointing out organizational gaps, we plan to give these companies value-added methodologies to grow & improve by root-causing systemic problem, not band-aiding symptoms” Quality Resolution Systems has been diligently observing these organizations because we know we are the answer they’ve been crying out for and seeking.
We are dedicated to assisting the OEMs with Streamlines the business of Corporate processes & Manufacturing Plants processes by unique re-training methodologies, bringing organizational structure. We are the solution your organization needs to stay ahead of this fast-paced industry.
Kiara Thomas is Founder & CEO of Quality Resolution Systems, an Organizational Management firm that works to redevelop functional gaps between corporate & support locations, improving supplier connectivity with comprehensive ERP software, and an automotive simulated training facility that offers uniquely created, hands-on training plans.
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