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David Ruggles's ADM Blog (8)

Henry Ford, a documentary

Henry Ford – A Documentary


Public Broadcasting Service PBS Premiere of American Experience Presents Henry Ford Tuesday, January 29th, 2013 9:00 – 11:00 PM on PBS – A Review


By David Ruggles

Henry Ford changed the world with his assembly line method of auto assembly, patterned after processes he observed in the meat packing industry.  One might think there is nothing new to be learned…


Added by David Ruggles on January 23, 2013 at 12:41pm — No Comments

Book Review: "Car Guys versus Bean Counters"

Book Review of:  "Car Guys vs Bean Counters. The Battle for the Soul of American Business," by Bob Lutz

Review by David Ruggles


The automotive world has been waiting for this book for months.  Lutz gave a preview to a group at a fleet conference I attended in Las Vegas last summer, where he received a Lifetime Achievement Award from the Automotive Fleet and Leasing Association (AFLA).   His… Continue

Added by David Ruggles on August 22, 2011 at 1:51pm — 1 Comment

I Was Wrong! But Don't Tell My Wife I Admitted It!

I predicted that Chapter 11 bankruptcy for Chrysler and GM would cause chaos and linger for years. Well, I was right about the chaos part. Little did I know what can happen when the government is the driving force behind a Section 363 sale in a Chapter 11, and how much influence the provider of Debtor in Possession financing has - especially when they also happen to be the government.

I do, however, remain dead set against the arbitrary termination of Dealers. Let’s hope there is a… Continue

Added by David Ruggles on July 8, 2009 at 4:39pm — No Comments

Lies, Damn Lies, and Statistics!

As I watched the Senate hearings today on CSPAN my blood boiled. When asked about the money they would save by cutting their dealer count these guys, Henderson and Press, engaged in some serious obfuscation. They asserted that by swapping an "under performing" dealer for a "performing dealer" they would pick up the gross profit of the additional sales of the new "performing" dealer. These calculations of the difference between what they got and what they felt they were entitled to makes up the… Continue

Added by David Ruggles on June 4, 2009 at 10:02am — No Comments

The “Throughput” Myth

Much has been written and spoken by the administration and in the media about the bankrupt Chrysler and GM Dealers lack of “throughput” as if it is a big drag on Manufacturer viability. This is used to justify the rejection of “deficient” and “extraneous” Dealers. It was pointed out in the Wall Street Journal recently that Toyota Dealers average 1613 new units per year while Chevrolet averages 643 and Dodge 408. The piece used the word “disastrous” to describe Buick Dealers’ 102 unit per year… Continue

Added by David Ruggles on June 1, 2009 at 5:57pm — No Comments

What did Rick Wagoner know that the Car Czars don't?

Until the bitter end, Rick Wagoner, deposed CEO of GM, refused to acknowledge bankruptcy as being a viable option for GM. I believe the plan he submitted to the Administration’s Auto Industry Task Force was the best he felt he could do without the benefit of bankruptcy court.

Bankruptcy court represents handing over control of the process to a bankruptcy judge. The judge has broad powers. A possible “benefit” GM, Chrysler, and the Car Czars might hope to accomplish through… Continue

Added by David Ruggles on April 24, 2009 at 12:50pm — No Comments

Drop Dead Day!

Ruggles Report March 2009

Well, we were ready to go to “press” with a piece on the wholesale market and auctions, when “Drop Dead” day for GM and Chrysler arrived and Rick Wagoner’s head rolled. I have been shocked by the “hue and cry” from so many different angles. So the piece on wholesale will have to wait.

So what is “Drop Dead Day?” On December 12, 2008, the Bush Administration “bridged” GM and Chrysler with TARP funds. The plan was to tide them over and let the next… Continue

Added by David Ruggles on March 31, 2009 at 8:00pm — No Comments

The Ruggles Report, In Defense of Auto Dealers

In Defense of Dealers

A few years back Michael Dell was quoted as saying he thought the

auto industry should adopt elements of his “build to order” PC

business model. He predicted that consumers would someday

purchase new vehicles directly from the Manufacturer. Obviously, he

didn’t put much value on what the Dealer adds to the Consumer /

Manufacturer equation. But after making a pass at Asbury Group Mr. Dell is now a Dealer

himself, having partnered… Continue

Added by David Ruggles on February 26, 2009 at 4:27pm — No Comments

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