Lee Iacocca: The Car Guy Who Could Count Beans
Full disclosure: I dressed up as Lee Iacocca for Halloween when I was in fifth grade. I don’t think anyone recognized who I was trying to be even when I did the pose on the cover of his autobiography. I might not be a perfectly neutral observer.
Iacocca’s was the auto bailout before the auto bailouts. The difference being that he made the US government billions of dollars in excess of what it borrowed while the modern Bush-Obama version permanently impoverished the country. Everything that has happened happened once before and will once again.
Iacocca, in his own words, was a car guy. He earned his engineering degree at Lehigh University and was hired by Ford Motor Company to be an engineer, which he did. One thing led to another, and he was eventually designing cars, the most famous of which was the Ford Mustang.
To hear Iacocca say it, there is no other car the heart could want more than the original Mustang, though if one reads carefully even that original Mustang had a blemish on it, imposed by the scion Henry Ford II who demanded that a couple of extra inches of rear legroom be added before it was moved into production.
Even so, it says something that the Mustang continues to exist decades afterward at a manufacturer that attempts to introduce new model names all the time, not with predictable success, but with predictable failure.
Iacocca pitted his style against technocratic management. Such bean counters would conduct marketing surveys and analyze spreadsheets (I suppose it must have been the predecessors to spreadsheets, really) to find opportunities for cost cutting. The result would be cars like what the Mustang eventually turned into: overweight cars that check off a lot of boxes for a lot of people, but ultimately miss the point about what the point of the car was supposed to be in the first place.
Iacocca didn’t just make a muscle car. At Chrysler, he invented the minivan as a category. The minivan’s time has now come to an end, but the reader should understand that it was once the staple of every mother just as the SUV is today. And most of them were Plymouth Voyagers or Dodge Caravans.
Additionally, Iacocca bought AMC for Chrysler. AMC made the beloved Gremlin and Hornet. Additionally, it also happened to own Jeep.
Before the abomination [what’s the word that means bad word? Appalation?] “SUV” was conjured, we called all Jeeps Jeeps. When Ford started making the Explorer, that was Ford making a Jeep.
Now, my two year old can recognize cranes, Bulldozers, excavators, dump trucks, pickup trucks, cars, and Jeep Wranglers. The Jeep is the only car that has elevated itself in his vision as needing a specific kind of descriptor because to his eye it is an entirely different sort of thing. The Jeep brand is inarguably the most valuable thing the remnants of Chrysler owns, and it is there thanks to a merger with AMC from 1987.
And still, I can’t help but point out all I’ve learned since reading his autobiography back-to-back several times when I was growing up.
First, Iacocca’s autobiography is self-hagiography. The villains, including scion Henry Ford II , are obvious even if they are truly villains. And I don’t know that they are because it’s not like I ever read Henry Ford II’s side of the story.
Iacocca got bailed out by Jimmy Carter’s administration. When reading the book, he mentioned all the impediments that made this decision controversial, and it was more than a decade later that I realized that as a libertarian I would have obviously opposed the bailouts.
A couple decades later, a key argument underpinning the bailout—that no one would ever buy a car from a company that had gone bankrupt—was proven false by General Motors who went bankrupt and proceeded to sell a lot of cars.
That’s more politics though. Lido was a car guy. I’d later learn that his view of bean counters absolutely is correct with respect to integrative products like cars or mobile phones. Such products have trade-offs where if you try to put everything that everyone wants, you can sabotage the whole rationale for the product you are producing.
Modular products exist too though, and with them, the technocratic approaches can work better. And certain cars (unlike small sporty cars) tend to be more accommodative of modular development than others.
Iacocca had me convinced that my life’s work would be to start a fourth car company in the United States. I think I made it to high school before I realized that starting a car company is not just kind of hard, but actually impossible.
And then Elon Musk went ahead and actually did it. The Tesla roadster is absolutely the product of a car guy. You can tell that a singular vision formed all of the design choices therein.
One thing that Iacocca understood very well that it doesn’t seem like Musk appreciates is that it actually does matter how many beans you have. Musk has benefitted from an unfettered ability to raise money to build cars the way he knows they should be built, but that is a route that can only last as long as it lasts.
Rest In Peace, Lido. I hope someone is able to do for Tesla someday what you did for Chrysler.
Mr. Iacocca was an important leader in the automobile industry during the sunset of Detroit. When he started, Detroit was the world leader in car production. By the time he finished, it was clearly in decline. He tried to change things, but the tide ran the other way. Was he effective? He certainly enjoyed great personal success, but did his works benefit our nation ultimately? What is the proper role of the government in intervention of economic activity? There are complex questions to think about.Report
Chrysler is still around today. I think there’s an important distinction between propping up a company (or industry) that couldn’t survive on its own and making a short-term loan to one that’s currently short of funds but able to recover from that. The 2008 bailout of the financial industry is yet another category: staving off worldwide economic devastation.Report
They were called spreadsheets even before they were computerized.Report
Bean counters and engineers are two sides of the product development coin. And whenever one side overly controls the process, things go sideways.Report
I would quibble over the Explorer being Ford’s version of the Jeep. The Explorer didn’t come out until 1990. The Ford Bronco came out in 1965. This is probably a locale thing but Broncos were waaaay more popular in Louisville and every kid knew the difference. Daisy Duke drove a Jeep 😉Report
Uhm… The Ford version of the Jeep is called the GPW.
The Willys MB and the Ford GPW, both formally called the U.S. Army Truck, 1⁄4-ton, 4×4, Command Reconnaissance,[2][3] commonly known as Jeep or jeep,[4] and sometimes referred to as G503,[nb 3] were highly successful off-road capable, light, military utility vehicles, built in large numbers to a standardized design, from 1941 to 1945, for the Allied forces in World War II. WikipediaReport
I assumed Vikram was talking about a post-war civillian off-road vehicle. The Bronco was intended to compete with the Jeep CJ-5. If my memory is correct the Bronco II was when the market started shifting to SUVs.
I will also say, as the owner of two SUVs, I love them. 90% of the time it’s plenty of cargo room and I like that I don’t have to worry about my gear getting wet. My front wheel drive CRV is nearly impossible to get stuck and I drive it through a lot of muddy cow pastures. My only complaint on modern SUVs is that the ground clearance keeps getting lower and they are making the interiors a bit less rugged. My 2011 is a workhorse though. Seriously the best vehicle I have owned.Report
Well, the internet loves nothing more than a pedant…
But I agree with you on the SUV front. The wife’s vehicle is a Subaru Outback and I have a shell on my Frontier. The room combined with security is just a winning combo. I do agree with the rugged interior issue also. I long for the days of just hosing out my truck. I grew up with my parents having a convertible (the apocryphal ’66 Mustang) and a mini truck. Not the most convenient pairing. Maybe that is why I am such a long-roof fan.Report
The truck with topper combo is real popular with the hunting community for the hose-out factor but everytime I look at the mpg on a V6 I have a panic attack.Report
I thought the whole point of making a clean shot is so you didn’t need the hose.
<– Learned everything about hunting from an article in The New YorkerReport
“My only complaint on modern SUVs is that the ground clearance keeps getting lower and they are making the interiors a bit less rugged.”
That’s because most modern SUVs are minivans (“crossovers”) or station wagons (“mini-SUV”).
See, Vikram suggests that the day of the minivan is over, but I don’t agree. Suburban families will always need a road-only vehicle with a highly-usable interior that has flexible seating. Originally that was a full-size car with a filled-out trunk space (station wagon), then it was the minivan, now it’s an SUV-looking platform but built on a car body instead of a truck.Report
We have several friends and family that are in that stage of life. Whether they go the SUV or the van route seems to depend mostly on whether they have something to pull (camper or boat). If they do, the husbands usually convincr the wife an SUV can work. My sister and BIL have never had to pull anything so they are a committed van family.
We always had an SUV because we just had the two kids but on vacations where we rented a van, the extra space felt incredibly decadent.Report
Suburban families will always need a road-only vehicle with a highly-usable interior that has flexible seating.
I would add “occasionally” in there somewhere. Over the life of such vehicles, the large majority of trips driven — some estimates are >95% — would have been served perfectly well by something like my Honda Fit. I suspect that the day will come within my lifetime that most Americans won’t have the luxury of vehicle shopping using the 5% extreme cases as the criteria.Report
Should we ever get autonomous on-demand car services, most people won’t need to shop for the edge cases.Report
counterproposal: if we get autonomous on-demand car services everything will be a minivan, because passengers won’t need to worry about storing a vehicle sized for the edge case, and fleet operators who will be living and dying on the thinnest of dimes will care very much about the operational efficiencies of a single-type inventory.Report
Don’t forget Mahindra, which has been making Jeeps in India since 1947, and which now makes the Roxor in Detroit.
The big difference is that Mahindra’s US offerings have a 5-slot grill and Jeeps always have a 7-slot grill. Jeep wouldn’t let Mahindra sell a vehicle with a 7-slot grill in the US.Report
Eons from now, alien biologists will decide that the Jeep and Mahindra were related because they both had an odd number of slots.Report
What’s weird is that once you see it, you can’t unsee it. There are always seven slots.Report
I sis a Google image search for “jeep grill”, and it’s true. All the grills have seven slots.
Then I searched “Mahindra grill”, and still saw lots of 7-slot grills, e.g. https://www.olx.in/item/mahindra-thar-angry-face-grill-available-shipping-iid-1293991677 .
(Oddly, neither search returned “Impeach Trump!” or “Don’t Hire White Males!” signs. )Report
Good lord, y’all. I was just saying that my son recognizes the Jeep Wrangler, not that it is the only Jeep that matters or that the Explorer wasn’t meant to compete with the Grand Cherokee rather than the Wrangler.
That said, I love every one of you who participated in this conversationReport
“And then Elon Musk went ahead and actually did it.”
Yeah, no. Tesla isn’t a car company. It hardly produces any quantity that could be consider mass production. And their not that reliable. Tesla makes $ from carbon credits. How many folks buy 80K roadsters that go less than 200 miles? Can they even match quantities that 2nd or 3rd rate car companies churn out?Report