Word: turnarounds
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...adding $1,100 in "legacy" costs to each American-made vehicle, says Sean McAlinden, an economist at the Center for Automotive Research. While the Japanese government pays for most Toyota retirees in Japan, GM shelled out $3.6 billion to pay for retiree health care just last year. GM's turnaround plan is a high-wire act: pushing up the launch of new pickups and SUVs, reducing profit-killing incentives, cutting costs and pressing its unionized work force to share more of GM's health-insurance bill...
...survey of initial car quality, tied with Honda and trailing only Toyota. Six years ago, Hyundai ranked among the worst in terms of initial defects. The comeback "is astounding," says Chance Parker, executive director at J.D. Power in Westlake Village, California. "We really haven't documented that level of turnaround in that period of time. They've adopted a quality mentality they didn't have before...
...Reilly says he's tackling these problems by investing $2.5 billion to refurbish his factories, revitalize research and development, and create new models. Early next year, Daewoo will launch the first SUV designed by its own engineers. "We've made a lot of progress," says Reilly. A full turnaround "shouldn't be that far away." For GM's sake, he'd better be right...
...Washington's turn last week to be stunned. In an astonishing turnaround, Yurchenko, in effect, redefected to Moscow, leaving behind a furor of questions, doubts and recriminations that promise to echo for months. Did Yurchenko simply have a change of heart, one brought about by the dark gremlins haunting a homesick mind, or by despair over being spurned by a Soviet girlfriend living in Canada? Or was he an ingenious fake, his flight to the U.S. and subsequent reversal shrewdly planned by the Soviets to humiliate the Reagan Administration and to glean secrets from debriefing sessions with the CIA? Either...
Ever since Chief Justice Earl Warren retired from the U.S. Supreme Court 16 years ago, American conservatives have been waiting for wholesale reversals of the Warren era's liberal precedents. But despite six Republican presidential appointees to the high bench since then, the turnaround has not materialized. One of the most powerful forces holding back the conservative tide has been a small, slightly rumpled, elderly gentleman with a ready smile and a legendary gift for gab, William J. Brennan Jr. Court observers agree that the liberal Justice, even in the supposed exile of dissent, has emerged as the master strategist...