Déjà Vu: Letter to Obama suggests Steve Jobs to head GM, Chrysler
Back in November, a New York Times columnist thought it would be a good idea for Apple CEO Steve Jobs to come to the auto industry's rescue. Jobs is worshiped by many in the tech world, and many feel that he pretty much saved Apple in the 1990s. But thinking that a brilliant tech guy can right the ship at struggling automakers could possibly be called a stretch. Well, Spark Capital founder Todd Dagres doesn't think so, as evidenced by his recent open letter to President Barack Obama.Dagres, like many financial analysts, feels that the auto industry is worth saving, if only to keep its high paying jobs and stave off a deeper nationwide recession. He understands that market conditions helped cause the auto industry's current struggles, but says General Motors and Chrysler don't make products that people want to buy. He feels Steve Jobs could step in and provide design and product leadership that could help return a combined General Motors/Chrysler to their former glory.
Steve Jobs has been nothing short of heroic during his second tenure with Apple, but comparing his Cupertino-based company to GM and Chrysler is like comparing Apple to oranges. For instance, GM still builds its own engines, transmissions and many other components that make up their automobiles. Apple doesn't make its own processors, motherboards, graphics cards, hard drives or disc drives. In other words, the two industries are far too different for Jobs – or any other tech guy – to make a difference. Dagres argument is also predicated on the assumption that GM and Chrysler are selling vehicles that people don't want to buy. While that may be true to an extent with Chrysler, GM's lineup is chock full of competitive products. To simply say they're not what people want is willfully ignoring the countless other reasons for not buying a new car during a recession.
[Source: Tech Crunch]
Reader Comments (Page 1 of 5)
ronEbear 1:06PM (2/25/2009)
Steve is the best man for the job because everyone knows that consumer electronics knowledge = auto industry expertise.
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Sea Urchin 1:20PM (2/25/2009)
No, he is the best because he showed that he knows how to make a product that is cool, reliable and for which people will pay enough for company to make money.
How much more of Rick Wagoner do you need to see? He took the biggest car company in the world and drove it straight into Ch7. The only reason GM is still alive is because Bush and Obama threw taxpayers money at them.
But by summer the money will run out and GM will be dead. Officially this time.
Joe K. 1:34PM (2/25/2009)
@Seaurchin: Cool I can justify you using regarding Apple product, but reliable? You are drinking the Apple Kool-Aid if you believe that!
I am on my 5th iPod but have only paid for 2 if that tells you anything.
I always thought the melding of VW and Apple would be perfect for that reason. They both have the same business model. Make it stylish so people will pay too much for it, convince them its reliable and has better components even though it isn't and doesn't...
Sea Urchin 1:38PM (2/25/2009)
Joe, i own an ipod, so do many people i know, not one problem.
Joe K. 1:46PM (2/25/2009)
And I own GM and Ford vehicles as do many other people I know, not one problem.
See how that response misses the issue?
Apple products aren't perfect. The iPhone 3G's were all sorts of issues when they released. Power books have been having issues with their polymer-ion battery for years. And that's not even the whole issue when it comes to these things.
Heck the iPhone doesn't even Copy & Paste, or do MMS. Those are pretty freakin' basic. That's like having a car without an FM Radio, or no glove box.
notYou 4:04PM (2/25/2009)
Sea Urchin: No, he is the best because he showed that he knows how to make a product that is cool, reliable and for which people will pay enough for company to make money.
The problem is that he doesn't have any experience making anything that's affordable by the masses. It's easy to be on top when you charge premium prices for premium products (that, generally, provide premium value). It's a whole 'nother to successfully slog it at the bottom end of the product scale.
Show me where Apple has been successful in their market with the equivalent of Ford's, Chevy's, and GMs lower end offerings, and I'll take another look.
PS. I'm not necessarily a fan of Dell, but they're more similar to the product price point, span, and manufacturing aspects of the automobile industry than Apple by a longshot.
N 2:04PM (2/25/2009)
Steve Jobs (and the rest of the IT industry) don't understand the word 'reliability.' Their products have a life cycle of 3 years at best... ours must last 15 years minimum.
Why are we listening to financial ANALysts anyway? Aren't they the same douchebags that got us into this mess with, "house prices will always go up!"
Patrick 2:43PM (2/25/2009)
There used to be a joke about what would happen in Microsoft made cars. This same joke would apply if any computer co. made cars. The development and mfg processes are very different and you can't just release firmware updates and software patches to fix cars.
Despite Apple's popularity, Apple has a history of being unfriendly to consumers. They would probably deny a lot of warranty claims and also, if you 'jailbroke' your iCar by adding something like an intake or different wheels, Apple would probably void the warranty altogether.
The 3rd thing is Steve Jobs is taking a break from Apple due to medical reasons. So would he really be able to work full-time for GM anyways?
cacmf 3:20PM (2/25/2009)
Instead of arguing how much SJ knows about auto manufacturing, perhaps we should really think about the type of qualities that the motor city needs, and if SJ can provide the qualities. They don't need SJ for something the big3 are good at. They need SJ to correct something the big3 are lack of.
Apparently the current management of the big3 don't have a clue, why not let SJ give it a try. What can be worse than the upcoming ch 11? He might be able to do something good, if he lives.
geo.stewart 3:34PM (2/25/2009)
maybe its the idea that the automakers would benefit from a little breaking up, ala AC Delco, Delphi.
RMN 5:25PM (2/25/2009)
Like it says in the article, American cars are competitive products, they just have a bad reputation, and abroad almost no reputation. If someone could get people exited about American cars, then the US auto industry would be in a much better shape. I'm not saying that Steve Jobs could do it, but he wouldn't be any worse then what the big 3 have now.
mike 3:52PM (2/25/2009)
What SJ brings to the table is an almost fanatical drive to bring a concept to fruition, in spite of engineering limitations. Could he make that happen in Detroit? Can the radical concept actually make it to production without all the compromises and trade-offs that are the norm? Which of the unmovable objects would give - Steve's will or Detroit's process?
mk3 5:19PM (2/25/2009)
@Joe K
5 ipods? I have had only one ipod in my life and that for several years. And I never had any kind of problem with that. It sounds to me that is you causing the problems. It's the same with cars. There are just a few cars that are not reliable, most of the cars produced today are very strong. Is the consumer that doesn't know how to maintain the car.
Joe K. 9:48PM (2/25/2009)
@MK3
Two replacements were for severe overheating, if I caused that I would be amazed those were both 4G non-photo 20G units. The third replacement was for my shuffle that ran out of battery in about an hour. So again, I doubt that was me.
Meanwhile I got 228k out of a 1989 Mercury Sable, some are lucky...
TNash 11:55PM (2/25/2009)
No, but Design=Design. If Steve could bring the intriguing designs from the Apple world into the Car Design world, then American cars might actually look good.
chimy 8:38AM (2/26/2009)
Of course Steve Jobs shouldn't head GM or Chrysler...but however does should studying Jobs (and many others)!!!
I've personally purchased 3 cars in the last 2 years and will be buying another in around 6 months. I always make it a point to look at American models...but I never buy one - why?
THEY ANNOY ME!!! - their designs, quality, endless options, actual vs advertised prices. You find a nice car for $25k... but by the time you add the ridiculous options (that should be standard) you find yourself staring @ a $40k car... WTF - screw it I'll buy a(n) __________ (Acura, Audi, Honda, VW.......) something with some sex appeal, nicer interior, ABS STANDARD!!!...
That's what they need to learn from Mr. Jobs... how to make cars you LUST.
TigerMil 1:08PM (2/25/2009)
SJ wouldn't survive in the auto industry six months.
Heck, he may not survive another six months where he is....I'm just sayin'
Reply
BoneHeadOtto 1:26PM (2/25/2009)
I know! He is used to engineers and designers that can carry a vision through to production at a specific price point. The american auto manufacturing industry would drive him crazy in 6 months!
Paul P. 1:08PM (2/25/2009)
Icar?
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srDRIVEN 1:56PM (2/25/2009)
no, iCar; haha