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Automotive Industries Magazine Grades Big Three

13 April 1998

Automotive Industries Magazine's Report Card for the U.S. Big Three: Profits Up, But Problems Remain

    DETROIT, April 13 -- If the U.S. Big Three automakers were
college students bringing home their grades, there would be celebrating in the
Ford home, lots of smiles at General Motors and a "you-can-do better" lecture
at the Chrysler house.  So says Automotive Industries Magazine's April
Industry Report Card issue.  This exclusive annual feature, now in its 13th
year, rates the U.S. automakers on quality, profit per unit, market share,
return on sales, productivity and inventory turns.
    Despite overall record profits in 1997, there is still lots of room for
improvement at Ford, GM and Chrysler, according to the April cover story.
    Ford earned an overall A for stellar performance in every area but market
share.  This seems to prove that the Ford 2000 global strategy, launched two
years ago, is working.  Ford Automotive Operations boss Jac Nasser earns a
gold star for everything but a 2.3% drop in share.
    GM, which had been a problem student in recent years, brought its grades
up to a B average.  It's doing superbly in quality, profit per unit and return
on sales, while market share is only mediocre.  Inventory turns, seriously
affected by last year's labor strikes, only managed a D grade, according to
the AI Report Card.  Much of the credit for the turnaround goes to North
American Operations President Rick Wagoner, who kept NAO's nose to the
grindstone.
    Chrysler, which has been the teacher's pet in recent Report Cards, dropped
to a C student.  Its big downfalls were market share, return on sales and
profit per unit, both of which suffered a measurable drop since the last
marking period.  Chrysler turned in only average grades in productivity and
inventory turns.  If Chrysler had to answer to irate parents, it might find
itself grounded until it finds a way to work up to potential.  That challenge
goes to new President Tom Stallkamp, who now has to deliver the same kind of
"A" performance overall he achieved as purchasing boss.
    Automotive Industries is the world's oldest trade magazine covering the
global automotive industry.  It is published monthly by Cahners Business
Information, a division of Reed Elsevier, Inc.

SOURCE  Automotive Industries Magazine