Posts Tagged ‘auto industry’
“And what is good, Phaedrus, and what is not good”*…
Keyana Sapp maintains The Brand Ledger…
Tracking the brands that got worse on purpose — and the ones that didn’t.
The Brand Ledger tracks 397 brands, from the tools in your garage to the pans in your kitchen. Who owns them, what they used to be, whether they’re still worth buying. Updated as things change…
On his blog, Worse on Purpose, he considers what quality is and how it is degraded. He begins with the story of his (now 15-year-old) Gibson Les Paul Studio guitar (a la the one pictured above), an exemplar, for Sapp, of “quality”…
… Everyone owns something like this: the old pair of boots, the battered wrenches, grandma’s cast iron pan, the 400,000 mile truck that will not die, etc…
Objects that wear in instead of wearing out. The ones whose quality you can feel the moment you pick them up.
Now try to explain what it is you feel.
Some quality lives in the guitar, the boots and the pan. You are able to detect it intuitively within seconds. But try to put to words precisely what it is you detect and you’ll discover a dilemma.
Your first instinct is to point at the materials. It’s mahogany. It has real humbuckers, a set neck, the best nitro lacquer. But that answer collapses the moment you notice the description fits every guitar on that wall. Two instruments leave the same factory in the same month, matching spec for spec down the line, and one sings while the other sounds weak. Every guitarist knows this, which is why nobody buys the model, they buy the individual guitar, only after noodling on it for a while. The spec sheet names everything the guitar is made of, and whatever quality is, it is not on the list of materials.
Fall back on “I just like it” and you sell the knowledge short, because standing in that store I wasn’t just voicing an arbitrary preference, I was detecting something. “This is a thing of quality. It is the one I want.” Fifteen years of ownership keep proving my instinct that day right.
That gap, between knowing good on contact and being able to say what good is, is one of the oldest open problems in Western philosophy. It is also the fundamental question this newsletter is attempting to answer.
Every investigation I’ve published documents the same story: a product stripped of what made it good while everything a shopper can check stayed intact. Same logo, same spec sheet, same four and a half stars, same price or higher. What got swapped out, the steel gauge, the stitch count and the years of service life, sits in the parts you can’t check from the aisle.
That gap between what you can verify and what actually matters is the whole game, for them and for you. They use it to slowly diminish the quality of the products you once loved without tripping an alarm. You can use it to watch the theft happen…
… In the late 1950s, a rhetoric instructor at Montana State College named Robert Pirsig noticed that his contract required him to teach “quality”. He asked around the faculty at the university and discovered that nobody could tell him what the word meant.
Teachers had been passing and failing students on the basis of quality for centuries without a definition. The problem ate at him for fifteen years, ultimately driving him to insanity. Pirsig’s best thinking on the nature of quality was eventually set down in Zen and the Art of Motorcycle Maintenance. It stands alone as the most formative book I have ever read.
To illustrate the problem, Pirsig relays an experiment he ran with his students. He read four student papers aloud and had everyone rank them by quality on slips of paper. He ranked them himself, collected the slips, tallied the results on the blackboard, and set his own ranking next to the class average. His ranking and the students’ matched almost every time, across classes and semesters. A room full of undergraduates who could not define quality independently agreed on where it lived and where it didn’t.
So Pirsig landed on this problem statement:
“Quality is a characteristic of thought and statement that is recognized by a nonthinking process. Because definitions are a product of rigid, formal thinking, quality cannot be defined.”
Then he added the sentence that should be nailed above the door of every product team in America.
“Even though Quality cannot be defined, you know what Quality is.”
When colleagues demanded proof that an undefinable thing existed at all, he offered this subtraction:
Pull quality out of the world and street noise ranks with symphonies, slop ranks with dinner, and no made thing is worth choosing over any other. A world without quality would still function. You just wouldn’t want to live in it.
Similar threads have appeared across disciplines.
The architect Christopher Alexander encountered the same problem from a different angle. A career spent asking why some buildings feel alive and others feel dead ended in the same non-definition, a quality that in his words “is objective and precise, but cannot be named.”
What Alexander did about it is the useful part. If the thing itself could not be written down, the places where it reliably appears could be, so he and his collaborators catalogued 253 of them, pulled from centuries of buildings people love, and handed architects and builders a working method for producing quality in buildings and towns.
That is what every craft tradition is: a transmission system for the unnameable, carried in people rather than paper. It is why apprenticeship survives every technology invented to replace it: the judgment that produces quality transfers only by demonstration and correction, through thousands of supervised repetitions across years, from a person who has it to a person who does not yet.
That fact cuts both ways. The judgment that can only be carried in people is also the one thing no spreadsheet can measure.
Whatever resists definition resists measurement. Whatever resists measurement vanishes from the dashboard. And in a company run from dashboards, what vanishes from the dashboard vanishes altogether.
That blindness is not an accident of modern business. It was designed, it has an inventor, and the tragedy is that it was invented to do the opposite job. During World War II, a General Electric engineer named Lawrence Miles was tasked with scaling turbo-supercharger production for B-24 bombers from 50 a week to 1,000 while steel, copper and nickel were rationed to hell. He hunted substitute materials, and noticed the surprising fact that substitutes often made the part cheaper and better at the same time. In 1947 he formalized the method and called it value analysis. Identify the function a part serves, then find the best possible way to serve that function. Function first, cost second. Through this process, Miles built a machine for producing quality cheaper.
The method worked so well it quickly became universal. The Navy adopted it in the 1950s and renamed it value engineering. The Pentagon eventually wrote it into federal procurement rules. Miles’s 1961 handbook was translated into a dozen languages, and within a generation nearly every large manufacturer ran a version of the program. Continuous, itemized, never-ending review of everything a product is made of, scored in dollars saved. That framework is now as ordinary as accounting.
Unfortunately, his descendants now run the machine backward. The modern cost-down program starts from the spec sheet and asks what can be removed without a statistically significant change in buyer perception this quarter. The thinner steel passes the test. The glued joint passes. The plastic gear where the brass one was, the foam that loses a third of its resilience in two years etc…
Each change is approved in isolation, and each is too small for any buyer to notice on its own. That is the trick. No test compares the product to what it was ten years ago. Each product version is measured against last quarter’s, comes back as “no detectable difference,” and ships. So the degradation compounds beneath the threshold of every individual measurement, invisible at each step and enormous in total.
It is by this mechanism that quality, the unmeasurable property, erodes as a company places a greater insistence on measurement.
When we ask what quality actually is, only two answers exist. Either quality is objective, meaning a physical property located in the object itself. Or quality is subjective, meaning an opinion located in the person judging.
Take the first answer seriously. If quality is a physical property of the object, then instruments should detect it. We can measure a guitar’s weight, its neck relief, its fret height, its finish thickness down to the micron. No instrument has ever measured whether it is good. If quality sat inside the object the way mass sits inside the object, quality control would be a solved engineering problem and a factory could certify goodness the same way it certifies tolerances.
Now take the second answer seriously. If quality is only an opinion, then a quality judgment reports a fact about the judge and no fact about the object. Two things follow. First, quality judgments should distribute evenly, because nothing in the object itself would constrain them. Second, no quality judgment could ever be right or wrong, because there would be nothing objective in the world for it to be right about.
Ultimately, both answers fail.
Pirsig’s blackboard example demonstrates the failure of the first: his classes converged on the same rankings, semester after semester, with no criteria handed to them. They agreed independently on some notion of quality, recognized it, but could not explain it.
The second fails on an experience everyone reading this has had: being wrong about quality. Nobody has ever been wrong about liking vanilla, because a preference claims nothing factual about the world. A quality judgment claims plenty. When I decided that Les Paul was good, I was predicting that the neck would stay straight, the frets would survive the abuse, and the guitar would still be worth reaching for in fifteen years. Every one of those predictions could have failed, and with other guitars, for other players, they have. Boots that looked right have come apart in one winter, and every buyer of a bad pair has said the sentence that pure subjectivism cannot explain: “I was wrong about those boots.”
So if quality is not an objective property, since no instruments can detect it, and it is not just a subjective opinion because we are able to make predictions about the quality of an object that are verified in time, then what is it?
Pirsig’s answer was that the question itself smuggles in the false assumption that quality must be located in one place or the other. He argued instead that quality is a feature of the relationship between the person and the object. Quality occurs when a person and a thing meet in use: the weight settling onto the shoulder, the wrench loaded to its limit and holding. Before they meet there is only a guitar and a player. Quality exists in the connection.
Apply this idea in the realm of consumer products, and the slow decline of quality starts making sense.
Every measurement a company takes lands on one side of the objective/subjective divide or the other. Spec sheets, tolerances, and materials testing measure the object alone. Surveys, star ratings, and focus groups measure opinions alone. And they sample the opinion at the wrong moment. A star rating gets filed in the first week of ownership, while the surface still shines, and the failures arrive in year three, when almost nobody returns to amend it.
Nothing measures the relationship, because the relationship only exists in use, in the hand, on the road and across years. So when quality drains out of a product, it drains from the one place no instrument points at. Both sets of numbers can hold perfectly steady while the thing between them disappears. That is how a product gets worse without a single metric moving. That is also how the people doing it stay convinced that nothing was lost.
What produced quality in the first place was care. Pirsig again: “Care and Quality are internal and external aspects of the same thing. A person who sees Quality and feels it as he works is a person who cares.”
A good object is a fossil record of care. Thousands of small selections made by people who could tell the good facts from the bad ones and picked the good, even when not doing so was cheaper or easier. The extra ounce of brass, the second coat of lacquer and the tolerance held a hair tighter than the drawing demanded. Every one of those selections survives for exactly one reason, which is that somebody with power over the object gave a shit.
That is why extraction works the way it does. When outside capital buys a great brand, nobody issues a decree that the product shall now be garbage. Instead, the people who previously made those thousands of selections either get laid off, retired out, or reorged into irrelevance, and the decisions migrate to a floor in an office building where nobody has ever actually used the product. Care cannot be exercised at that distance. Quality follows care out of the building, and the whole thing happens without any individual ever choosing badness directly. Absence does the job on its own…
…
… There are two ways to make money on quality. You can make a thing so good that people pay for it, keep it, and hand your name to their kids. That is the Miles road: quality found cheaper, profit as the receipt for care. Or you can buy the name after the caring is done, spend down four generations of accumulated trust, and be gone before anyone’s memory catches up…
Eminently worth reading in full. An ode to Pirsig: “On Quality,” from @worseonpurpose.bsky.social.
(Image above: source)
* Plato’s Phaedrus (which means, as Sapp observes, that the question of quality is at least twenty-four centuries old)
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As we interrogate enshittification, we might recall that it was on this date in 1908 that Buick Motor Company head William Crapo Durant incorporated General Motors in New Jersey…
Durant, a high-school dropout, had made his fortune building horse-drawn carriages, and in fact he hated cars–he thought they were noisy, smelly, and dangerous. Nevertheless, the giant company he built would dominate the American auto industry for decades.
In the first years of the 20th century, however, that industry was a mess. There were about 45 different car companies in the United States, most of which sold only a handful of cars each year (and many of which had an unpleasant tendency to take customers’ down payments and then go out of business before delivering a completed automobile). Industrialist Benjamin Briscoe called this way of doing business “manufacturing gambling,” and he proposed a better idea. To build consumer confidence and drive the weakest car companies out of business, he wanted to consolidate the largest and most reliable manufacturers (Ford, REO, his own Maxwell-Briscoe, and Durant’s Buick) into one big company. This idea appealed to Durant (though not to Henry Ford or REO’s Ransom E. Olds), who had made his millions in the carriage business just that way: Instead of selling one kind of vehicle to one kind of customer, Durant’s company had sold carriages and carts of all kinds, from the utilitarian to the luxurious.
But Briscoe wanted to merge all the companies completely into one, while Durant wanted to build a holding company that would leave its individual parts more or less alone. (“Durant is for states’ rights,” Briscoe said. “I am for a union.”) Durant got his way, and the new GM was the opposite of Ford: Instead of just making one car, like the Model T, it produced a wide variety of cars for a wide variety of buyers. In its first two years, GM cobbled together 30 companies, including 11 automakers like Oldsmobile, Cadillac, and Oakland (which later became Pontiac), some supplier firms, and even an electric company.
Buying all these companies was too expensive for the fledgling GM, and in 1911 the corporation’s board forced the spendthrift Durant to quit. He started a new car company with the Chevrolet brothers and was able to buy enough GM stock to regain control of the corporation in 1916, but his profligate ways got the better of him and he was forced out again in 1920. During the Depression, Durant went bankrupt, and he spent his last years managing a bowling alley in Flint.
– source
In the early 1900s public outcry over weak government regulation of gasoline-powered horseless carriages was significant. Durant clocked this public anger, and rather than relying on government regulations to improve their safety, he saw it as an opportunity to create a company which could improve the quality and safety of this new class of transportation. Fast forward just over a century and General Motors seems to have fallen prey to the extractive impulse that Sapp describes: the company and its cars are beset by myriad quality issues.
“Only in our dreams are we free. The rest of the time we need wages.”*…
The Economist is repurposing one of its famous indices…
Since 1986 The Economist has produced the Big Mac index as a light-hearted gauge of whether currencies are at their “correct” level. The famous burger is a good test of currency valuations because of its global uniformity and ubiquity. The same properties make it a useful way of comparing international salaries: how many Big Macs, in principle, can a typical worker afford with their wages?
The more conventional way of comparing incomes is to convert wages in different countries into a common currency. But that is misleading because exchange rates are volatile. Moreover, one American dollar goes a lot farther in, say, the Philippines than it does in America itself. The Big Mac helps to solve this problem as a ready-made illustration of purchasing power: it represents a bundle of goods (or, rather, a bun of goods) that is identical everywhere, and so it serves as a yardstick of the real cost of things from country to country.
For the Big Mac wage analysis (the MacWage, for short), we started with full-time, pre-tax earnings in 2023 as reported by the OECD, a club of 38 mostly rich countries. We then made a simple adjustment, dividing wages by the price of a Big Mac—all in local currencies. That gave us the number of burgers that the average full-time worker can buy annually.
The results? Americans can perhaps be forgiven for having somewhat expansive waistlines. Although fast-food prices have rocketed since the pandemic, Americans still earn more greasy calories than any others in our analysis [chart below]. The average American worker takes home the equivalent of 14,000 Big Macs in wages for a year of full-time work. At 590 calories a pop, they could buy enough burgers to keep ten adults fed for a year. The Swiss and Danes come, respectively, second and third in MacWages. At the bottom are Mexican workers, who can afford to buy about 2,500 Big Macs with their average annual wages.
A standard objection to any measure of higher incomes in America is that its workers generally get less time off. To factor this in, we looked at average hours worked, based on data from the OECD and the Conference Board, a business-research group. This yields slightly different results (see chart 2). Americans still get more than enough Big Macs—pulling in the equivalent of about 7.4 per hour on the job—but they drop to third in the ranking. The burger champions are the Danes, who earn 8.1 per hour, followed by the Swiss. Looked at another way, the average Dane works for just seven minutes to make enough money to buy a Big Mac. In Mexico—still at the bottom of the rankings after this hourly adjustment—workers must toil for about 57 minutes.
The MacWage is, of course, far from perfect. Danes may celebrate their top performance, but our measure misses how income taxes (which can surpass 50% in Denmark) eat into their burger budgets. Much else of what goes into the cost of living, from housing to transportation, is also barely reflected in the price of burgers. In a developing country like Mexico, where housing is relatively cheap and American fast-food indulgences relatively expensive, a burger-based wage calculation understates how much stuff an average worker can actually afford. Still, as a quick method for comparing incomes around the world, the MacWage is easily digestible…
The purchasing power of average earners across the OECD: “An alternative use for The Economist’s Big Mac index” from @ECONdailycharts in @TheEconomist.
* Terry Pratchett
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As we supersize that, we might recall that it was on this date in 1979 that the U.S. government agreed to a bailout of the Chrysler Corporation. The smallest of the “Big Three” automakers, but still the 10th largest company in America, Chrysler suffering from a combination a bad management decisions and increased competition from Japanese and German automakers. Facing a $500 million loss for the year (and probably bankruptcy), newly-installed CEO Lee Iacocca asked the government for a guarantee on a $1.5 Billion loan package. In return for detailed plans from Chrysler detailing both how the company would right its ship and how other constituents (employees, suppliers, lenders) would make concessions, the Carter Administration (which feared that a Chrysler failure could lead to a “depression”– and depression-level unemployment– in the auto industry) agreed. In return for its guarantee, the government received stock warrants in the company.
Chrysler did turn itself around: it proceeded to introduce the “K-Car” line, then mini-vans, then the earliest generation of SUVs. The company repaid the government-guaranteed debt ahead of schedule; the Treasury made about $500 million on its warrants.
But of course, nearly thirty years later, in 2008, Chrysler received billions in a new bailout from the U.S. government in the aftermath of the financial crisis that decimated automotive sales over the following few years. Chrysler filed for Chapter 11 bankruptcy in April 2009, before being acquired in total by Fiat in 2014.

“Personally, I would like to renounce speech altogether and, like organic nature, communicate everything I have to say visually”*…
Driving across America, one encounters a wide variety of cultures, landscapes, people, and animals. But the one consistent thing that will stay the same from Maine to California are the signs one passes on the highway. That’s because, as Jon Keegan explains, America’s roads and highways have a big, fat style guide…
First published in 1935, the Federal Highway Administration’s (FHWA) “Manual on Uniform Traffic Control” (MUTCD), is a hefty tome consisting of close to 900 pages that contains the federal standards for all traffic safety signs, roadway markings and other “traffic control devices” that a driver on a road in the U.S. might encounter.
The MUTCD states that it “shall be recognized as the national standard for all traffic control devices installed on any street, highway, bikeway, or private road open to public travel”. Exact specifications for the font, size, spacing of letters, background colors, reflectivity, mounting location and orientation help ensure that traffic signs are consistently readable at a glance while driving anywhere in the U.S…
The remarkable– and enlightening– story: “The Style Guide for America’s Highways: The Manual on Uniform Traffic Control Devices,” from @jonkeegan. TotH to @kottke.
* Johann Wolfgang von Goethe
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As we read the signs, we might send elegantly-designed birthday greetings to Walter de Silva; he was born on this date in 1951. A car designer and automotive executive, he began as a designer at Fiat in 1972, then went on to lead design at Alfa Romeo, SEAT, Audi, and finally Volkswagen Group– where, in 2007, he became Chairman.








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