Michael Arrington still doesn’t know what he is talking about
Michael Arrington has some advice for the auto industry. All of his advice is stupid and poorly reasoned:
But there’s a reason why the car companies can’t build the iPod of cars. It’s because they’re so weighed down with all the logistical nightmares of actually building the stuff that goes into those cars.
Translation: “I like idea companies like Apple so why do car companies do boring stuff like manufacture stuff? Wouldn’t it be cool if cars were made by young 20-somethings who sit around in garages and dream up visionary new softwa… uh, I mean, cars? The car industry, as it actually exists, puts me to sleep, but if they gave up making stuff and focused in on ideas, I might almost find that industry interesting.”
Who’s the Intel of engine manufacturers? Why isn’t there one?
Translation: “Each industry should have companies that are just like the companies in the industry that I cover. I deplore the way the auto industry has a history, culture, cost structure, product and customer base that is different from the computer industry, and I want them to stop immediately. I will not tolerate variations among different industries, but, instead, I demand that all industries be exactly the same.”
The best way forward for the automotive industry is to rip itself apart and start doing things sensibly, like the PC industry does. It won’t make any one company more stable, of course. In fact, it means competition will regularly drive companies at every point in the process out of business. But none of those companies will be in a position to drive our economy south if they do go out of business. Someone better will just take their place.
Translation: “I don’t know anything about the auto industry. I do know a lot about the computer industry. I don’t want to think about problems that are unique to the auto industry because that would make my brain hurt. Even worse, I might have to think new thoughts. I’d prefer it if every industry was exactly like the computer industry, because that is the industry that I’m comfortable with.”
It won’t make any one company more stable, of course. In fact, it means competition will regularly drive companies at every point in the process out of business.
Translation: “I sort of realize that my bad advice will make car companies even less profitable and, yes, I am directing this advice to General Motors, which is almost bankrupt and which actually needs more profits, not less. But I don’t want to confront the contradictions in my reasoning because then I would have nothing to write about and, anyway, I love the sound of my own voice so I need a good reason to keep talking.”
There’s a counter argument, that Toyota is the most
vertically integrated car company in the world, and also the largest and healthiest. I argue that they’re the only ones that can do it profitably over the medium run in such an inefficient market because they have scale. If the market changes, which it is, that vertical integration model will fail.
Translation: “It’s important that people stop paying attention to the world’s most successful manufacturing company and start paying attention to me, even though I don’t know anything about manufacturing. The companies that I cover are cool and sexy and fashionable and manufacturing companies are retarded and I hate them so, clearly, my opinion needs to be listened to by decision makers. I realize that Toyota has been gaining market share steadily for 40 years, and some morons will be distracted by that fact and thus fail to listen to me, so I now, boldly and in a visionary way, predict that next year Toyota will finally stop being successful and anyone who doesn’t do what I say will be really, really sorry.”
December 1st, 2008 at 2:20 pm
[...] Vote Michael Arrington still doesn’t know what he is talking about [...]