Social Sharing block
Detroit has become the largest city ever to go broke in the United States. Why? Because its industrial base withered in the face of global competition, and as the number of jobs dwindled, so did the city’s population.
|
ADVERTISEMENT |
This column isn’t about the specifics of the Detroit problem but about the role of quality (or the lack of it) behind Detroit’s bankruptcy. What has quality got to do with Detroit’s problem? Plenty, if you define quality as meeting customers’ requirements or providing “value” where customers see value.
The genesis of Detroit’s troubles today can be traced back to the gasoline crisis of the 1970s, when U.S. customers started looking for smaller and more fuel-efficient cars. This customer requirement was better met by manufacturers from other countries—particularly Japan. By the early 1980s, the U.S. automotive industry was in serious turmoil. The Big Three were losing market share fast.
…
Comments
Not just the auto industry
Arguably, Detroit's population decline started in the late 1960s after the riots and it was all downhill from there as people fled to the suburbs ("white flight" and later "middle class African-American flight").
It wasn't just the decline of GM that hurt Detroit. There were many other factors including corruption in city government, etc.
GM's downfall certainly didn't help. Even if GM had grown the number of jobs in the city of Detroit, I bet more people would have been driving in from the suburbs.
Motown's bankruptcy and poor quality governent
The root cause of Motown singing the bankruptcy blues is poor quality government: 1) single political party rule for 60 years, 2) corruption throughout city government, and 3) inept leadership. Even Motown records cut loose from Motown decades ago.
Add new comment