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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: ild who wrote (36686)	9/7/2005 3:37:56 PM
From: TH	Read Replies (1) of 116555

ild, I will ask my buddy in Ford electrical your question, for I do not have a factual answer to give you. My buddy is an expert in electrical systems for new vehicle launch. He has shared many a story with me over the years, and most of them never make it to the public. For example, a few years back an important "family" vehicle was catching fire while parked in dealerships. I know from my work with Ford Engineering that they (the release/design engineers and material engineers) live in fear of having a part recalled. It could be a 50 cent part, but after you add in labor and logistics, you could be looking at $50 a car. Sometimes a lot more. Having a recall on your reputation can impact career growth. Most of the time the supplier gets blamed. Back in 1994 the company I worked for made a chemical mix error. Mitsubishi held 6 days of production in their parking lot for us to rework. The final bill had many, many digits. It killed our profit for the entire quarter. And that was just six days of production. I'll get you some real information on this recall when I see him next Tuesday. GT TH

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