Accomplished writer David Halberstam tackles the decline of the US auto industry and the parallel rise of the Japanese one from the 1940s through the mid 1980s in this very long book. Actually, Halberstam does start a bit earlier with that by discussing the founding of the Ford Motor Company by Henry Ford. He writes about how Ford was an autocrat, despite having a good reputation for paying his workers and above average salary. Halberstam does not even get into other radioactive aspects of Ford, such as his violent antisemitism, but keeps this mostly confined to his stewardship of the company that he founded. As Ford aged, and became increasingly out of touch with the burgeoning automobile industry and its customers, he tenaciously clung to power in his company and refused to let go.
Halberstam uses Ford the man to demonstrate how the incredible arrogance of the big three United States automakers helped pave the way for Japanese auto companies to move into the US and begin to take over the market later in the 20th century. Ford seemed to peak when he developed the model T early in the 20th century. After that, he did not want to make any changes at all to his company. Increasingly eccentric, Ford had to be almost forced to develop the model T later on, and basically stood in the way of progress until he finally resigned from control of the company in late 1945.
This book is roughly evenly divided with Halberstam spending half the time on the American market, and half the time on the Japanese one. However, he does not go into all of the various companies equally. The American half is mostly concerned with only Ford. There are a few late chapters on Chrysler, mainly once Lee Iacocca, who had been fired from Ford by Henry Ford II (Ford’s grandson), took over as chairman and resurrected Chrysler from bankruptcy. As far as the Japanese side, Halberstam focuses almost exclusively on Nissan. There are only infrequent comments about both Honda and Toyota. Also, the European auto makers are barely mentioned. Occasionally Volkswagen is brought up, but that’s about it.
Halberstam spends a lot of time reviewing the situation that the country of Japan found itself in at the conclusion of World War II. With much of its land decimated by fire bombing from the United States during the closing stages of World War II, Japan had to almost completely rebuild. It was under a US occupation, with General Douglas MacArthur essentially running the country, and the Japanese themselves were dictated to by the Americans. Despite this, the Japanese were and remain a proud people and were devoted to rebuilding their country and becoming an economic powerhouse.
Out of this rubble, Nissan began to build itself into an automotive superpower. Smaller than Toyota, and not yet a direct competitor of Honda (the latter was involved mainly in motorcycles at this time), Nissan at first had to deal with some serious labor issues before it could move forward. Halberstam spends a lot of time discussing a significant labor strike in 1953 that caused repercussions to echo throughout Nissan’s next 30 years. The international Bank of Japan sent a gentleman named Katsui Kawamata to Nissan to basically run the company. He created a second union that was in direct opposition to the first union, headed by Tetsuo Masuda. Masuda ended up becoming ruined by Kawamata and crushed by Kawamata’s lieutenant, Ichiro Shiogi. Some strong arm tactics were used, reminiscent of tactics used by Ford in GM on American workers during the 1930s. Workers who did not voluntarily support Support the second union were harassed, and sometimes physically assaulted. Those who supported the union basically were able to secure their jobs.
It is sort of ironic to see how, basically from today’s perspective where the foreign automakers have a huge slice of the market in the United States, Nissan almost had to be dragged kicking and screaming to import cars to America. In the mid-20th century they really didn’t want to have anything to do with the West. However, with much of the population back then not owning cars in Japan, the only real way for Nissan (and Toyota and Honda) to grow was to export their cars to other countries, with no bigger nor more enticing of a market than the United States. But this was not an easy transition for Nissan to make. They distrusted the Americans, and viewed them as weak and lazy. They also thought that the designs that sold well in Japan would translate to good sales in America, not factoring in that Americans view their cars much differently than the Japanese do. For many of the Japanese, a car was simply a means to get from A to point B, and nothing more. They were not able to understand people who loved their cars, such as the Ford Mustang, which Lee Iacocca did much to help design and push through at Ford in the early 60s. That type of worship of an automobile was foreign to the leaders of Nissan. They also didn’t understand why Americans didn’t put warm blankets over their car engines at night in the winter time to help them start in the mornings.
Nissan was also very hesitant to start actively building any cars in North America. It did not trust the quality of the American worker, and was concerned about dealing with the powerful United Auto Workers union. Speaking of the UAW, Halberstam has a few chapters about how that union became so powerful and how it’s head Walter Reuther really managed to make some serious beneficial changes on behalf of auto workers at the Big Three. Halberstam also discusses that, while the UAW did great things for the workers in the mid-20th century, it was unable to protect them from the slide that hit US auto makers following the oil shocks in the 1970s, then high inflation, and also with the Japanese starting to invade the market. Halberstam spends a few chapters narrating the tale of a Ford worker at one of its plants and how he felt that he was immune to ever being laid off (despite others around him losing their jobs) until it happened, and then thought he would go right back to work only to find that he was not recalled for over three years before coming back to Ford. And after that, he was in continual concern over losing his job yet again.
Many of the chapters on the American side are concerned with the stifling corporate culture of Ford, and how Henry Ford II was an erratic leader of the company, and basically treated his top executives as hired hands, using them up and spitting them out as it suited his purposes. Ford and Iacocca clashed greatly and basically vied for power for well over a decade before Ford finally fired him in the late 70s. Halberstam chronicles an incredible series of missteps that the executives at Ford made throughout several decades, such as refusing to start manufacturing front-wheel drive cars, even though the technology was already there and those cars were proving popular in Europe. The company was originally less than enthusiastic about the Mustang, and only because of a hard push by Iacocca did it finally relent. Ironically, the Mustang has become Ford’s most iconic car. But Henry Ford II only gave lukewarm support at best to this endeavor in the early 60s. The culture that Halberstam paints is one of safety and an over abundance of caution, with nobody wanting to say anything that their superior may not like. The result was a complacent auto maker that thought that it would always be right behind GM and ahead of Chrysler and never challenged by anybody else. The OPEC oil shocks in the 1970s shocked Ford, as it did the rest of the country, leaving it ill-prepared to deal with this because of its fleet of gas-guzzling vehicles that it kept turning out year after year. Even then Ford still didn’t want to get into the compact car market because it didn’t think that US consumers wanted those types of cars. The obtuseness of the people high up at Ford just makes you shake your head. But Ford wasn’t the only company acting in this manner, with Chrysler being even worse off, and GM thinking that it was too big to ever fail. I have to inject a personal note here and say that this continually reminded me of my grandmother‘s tan 1977 Mercury Grand Marquis. That thing was such a gas hog; you could almost see the gas gauge moving towards empty as you drove down the road.
Despite the Japanese often commenting about how arrogant America was, and it was not wrong in that view, they themselves eventually started to become smug and cocky. And this also hurt them in the 80s as economies around the world started to go into recession. Japan was importing so many cars to the United States that it was starting to draw the ire of politicians over here, and especially politicians. Nissan thought that for a long time it could provide a bare bones vehicle here that Americans would eat up. When the Datsun was first introduced by Nissan it was tough, but not very good in terms of driving performance. It had a small engine, which did not allow for very quick acceleration onto highways, and the brakes were quite weak. Nissan took almost a decade to make changes to the Datsun before getting it up to par for the American consumer.
Halberstam includes a chapter on Ralph Nader. This was focusing on Nader’s beginnings as a sort of pest of big businesses and as an advocate for consumers. He helped to make a name for himself by exposing some unethical practices that General Motors was engaged in. The chapter felt odd because Nader only appeared in this one particular area of the book, and with Halberstam specifically not focusing on General Motors I’m not really sure why he decided to include Nader as we do not hear from him again in the book.
While this is well written, which is a staple of Halberstam‘s works, this one at times felt like a little bit of a slog to me. It wasn’t the writing so much as it was that there is such a large cast of characters involved. You have all of the people at Ford for about a span of four decades, then the same number of people at Nissan. Then you have some other chapters, like the one with Walter Reuther and the UAW, and the Nader chapter, etc. And after a while, it gets hard to keep all of the names straight; it doesn’t help that no pictures were included in the book so you can no match a face to a name. Still, this is a very good book, and despite the age it did not feel dated to me at all. When you think about what’s going on in the world today and how interconnected the global economy is, many of the issues that Halberstam writes about are still with us today.
Grade: B+