Friday, December 10, 2004

Poor Quality = Better Value (Redux)
Some of my loyal reader(s) will remember this post in which I noted that despite three recalls in three days, GM managed to actual increase its stock price over that same period.

Word comes out today that the National Highway Traffic Safety Administration, or NHTSA (pronounced "nitsa", for those who want to sound like civil engineers), has ordered DaimlerChrysler's Dodge unit to recall 600,000 of its Durango SUVs and Dakota light trucks, because of an engineernig fault that can cause the front wheels to fall off.

Does this sound normal to you? Isn't this the sort of thing that designers should take note of?

"Dr. Thomas, we've been running some tests, and apparently the front wheels keep coming off. It seems pretty random."
"How often does this happen?"
"Well, sir, it seems that it happens in about a third of the vehicles - it's a ball joint problem. All of these vehicles' ball joints were made at the same plant."
"So, this plant puts out crappy products?"
"Yes sir."
"Well, this happened to GM, and they gained two bucks a share. Promote the plant manager, and do nothing about the problem!"

Or something like that.

Thankfully, investors didn't see it the same way they did with GM (probably just because Dodge has better ads, and so obviously they don't need the money), and Dodge shares were off more than 50 cents per by this morning.

But seriously....the wheels fall off? And nobody noticed until now?

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