Chapter 13
Annual car models are now such a natural and accepted part of American life that few persons, I would imagine, have thought about the vast effort of management that lies behind them. The procedure we follow in designing a typical American passenger car differs significantly from that followed for foreign cars and specially designed domestic cars.
Each year we must produce a line of cars which embodies advanced engineering and styling features, and which will be competitive in price and meet the demands of the retail customer. The cars in this line must have some common styling features, giving them all a "General Motors look," but at the same time they must be clearly distinct from one another. They must also complement one another in price, which means that their own cost elements as well as the trend of competitive prices must be estimated well in advance of production.
In General Motors there are thousands of persons—in addition to production workers—involved in the creation of the new models: they include style artists and engineers; scientists; financial and marketing experts; members of the technical staffs of the various divisions; and the general executives and staff technicians of the corporation, not to mention our outside suppliers. The problem of co-ordinating their varied activities is extremely complex.
On the average about two years elapse between the time we make the first decisions on the new models and the time the cars appear in dealers' showrooms. Ordinarily, the sequence of events during these two years is determined principally by the requirements of body production. Body changes, of course, are usually substantial from one year to the next, and the body work takes the most time. There are continual changes in chassis components, too, of course, but only occasionally in any one year do we introduce changes in all the chassis units—the frame, engine, transmission, front and rear suspensions.
To generalize broadly, the first year of the model development is devoted to laying out the basic engineering and styling characteristics of the new model; and the second year is devoted mainly to the engineering problems entailed in bringing the cars into full production. It is extremely difficult to get either of these jobs done in much less than a year's time. If we compress the time given to setting the basic style concepts we increase the danger of "locking ourselves in" with a product which will not meet the approval of the retail customer. And if we compress the engineering-production time we pay extraordinary overtime charges, create inventory problems, and possibly delay the time when we can start production—which in turn might mean delays in a car's announcement date and loss of sales.
On the other hand it would be unwise to lengthen the time taken to produce the new models. There is, of course, no reason in principle why we could not begin to plan our model changes three or even five years in advance—and, in fact, we do some thinking that far ahead—but there is the practical difficulty that the planners are then remote from the realities of the market place in which their work will be tested. Even the two-year period usually required now imposes a severe strain on the corporation's ability to gauge the market correctly. The problem may be viewed this way: General Motors, like other automobile companies, is obliged to invest millions of dollars to devise new products, which cannot, however, be sold until a long period of time has elapsed. Meanwhile the consumers' taste, income, and spending habits may all have changed radically. For that matter, we cannot even be certain that the new model is "right" at the time it is first conceived. Responses to sketches, and to survey questions, are often undependable. It is an axiom of marketing research that automobile customers never know whether they like the product well enough to buy it until they can actually see the real thing. But by the time we have a product to show them, we are necessarily committed to selling that product because of the tremendous investment involved in bringing it to market. Every automobile manufacturer has on occasion been caught off base by the consumer. Nevertheless, in the nature of things, we must plan and co-ordinate our efforts in order to get to market with a new model.
This very special kind of co-ordination has evolved out of the planning experience of many years. I have described the near disaster that General Motors experienced in 1921-22 because there was no established co-ordination procedure which would enable the several distinct management groups to work together on a new-model program. After that experience we gradually put system and method into the introduction of the corporation's models. In 1935, we set down on paper for the first time, I believe, a procedure governing the production of new models. It was a manual designed "to provide a definite and orderly method for submitting the essential data required, in order that the economic, financial, engineering and commercial position of proposed new products may be evaluated; and, second, that their progress, from the time of approval to production, may be established, for the information of all concerned." The product-approval procedure was substantially revised in 1946, and to some extent is continually changing. It should be emphasized that these written procedures are not an exact "timetable" to which our model runs must conform.
In stating that the model-development periods average perhaps two years, I do not mean to imply that we start each model from scratch at the beginning of this period. The Styling Staff, for example, is continually experimenting with new designs for distant-future models, and at any point in time there is sure to be a sizable backlog of new styling ideas at our disposal, some of them quite conventional, some revolutionary. And each car division is continually engineering a variety of new features, mainly for the chassis. Some of these features may have been taken over from the Research Laboratories and the Engineering Staff or perhaps from the accessory divisions and refined in the car divisions to the point at which it seems feasible to introduce them into production models; others may have been developed entirely within the car divisions' own engineering shops and laboratories.
Usually, the first formal meeting on a new model is preceded by many informal discussions. For example, the car-division management and the Styling Staff review the advantages and disadvantages of past production programs, they examine customer-research reports and market analyses, and discuss the general package size and styling concepts for the new cars to be designed. Some of these issues may be taken up with the central-office Engineering Staff and with Fisher Body Division, as well as with the chief officers of the corporation.
Even though some important work on future models is always going on in the corporation, most of us have come to think of each new model program as "beginning" with a meeting called by the Engineering Policy Group. The reader will recall that this group reports directly to the Executive Committee and includes the corporation's chairman, president, and the principal central-office executives. The group's chairman is the vice president in charge of the Engineering Staff. Since the group concerns itself with broad corporate policy, the membership does not include the general managers of the car divisions or Fisher Body, although these men and the chief engineers of those operations are often invited to attend the group's meetings for a review of the programs in which they are involved.
The main business of this first meeting is to determine the outline of our styling and engineering programs, that is, to determine the cars' general appearance and size characteristics, and to indicate the direction of further styling and divisional development. The desired seat widths, head and leg room, as well as exterior height, width, and length are all considered. The Styling Staff displays full-size styling drawings, so that those present can get a feeling about the appearance, size, and roominess characteristics. Along with the drawings, we generally show full-size, dummy seating arrangements, commonly referred to as "seating bucks," which are constructed to simulate the proposed car interior. This "buck" allows us to check entrance-room conditions, vision, roominess, and seating position. The members of the group look over, you might say, what the stylists have to offer.
In line with the ideas developed at this "kickoff" meeting, the Styling Staff progressively develops several series of full-size styling drawings, as well as full-size clay models and seating bucks for each kind of car in our line. In order to achieve the desired objectives of the program, and to keep abreast of tooling and manufacturing requirements, the Styling Staff must work closely with the car divisions and Fisher Body for many months following this first meeting. In general, it is the Styling Staff's responsibility to set the basic appearance of each kind of car. That is, the staff works out the basic appearance of the General Motors sedan, coupe, hardtop, station wagon, and convertible—and usually the work is done in that order. Each division has its own studio within the Styling Staff, and these studios are responsible for giving each car line its own distinctive features—for example, the features which distinguish the Chevrolet and the Pontiac lines.
During these first few months of the program, the various clay models are changed and refined continually; and at each stage the seating arrangements are modified in line with the styling suggested by the clay model. Many of these changes are worked out with the help of sketches and small-scale clay models which are developed by Styling in an attempt to experiment with newer and more attractive concepts.
Meanwhile, the engineering departments of the car divisions and of Fisher Body have been working continually with the Styling Staff in order to reach an agreement on the chassis dimensions—that is, on the wheel base, ground clearance, tread, and the space required for the engine and drive mechanisms. An agreement on these fundamentals is necessary to permit the Styling Staff to "firm up" its concept of the new models.
About two months after the first meeting the Styling Staff offers the Engineering Policy Group a fairly advanced styling proposal, presented with a full-size clay model and seating bucks, for the sedan. (This proposal will have already been approved by the interested car divisions and by Fisher Body.) At subsequent Engineering Policy Group meetings, which are held at least once a month, proposals for the other body types are shown. This does not result in a prescribed order of approval, however. In the ensuing period of review and change, which may last for four or five months, it is quite possible that the coupe style, for example, may receive general acceptance ahead of the sedan style. However, at least eighteen months before the start of production the Engineering Policy Group should approve the sedan clay model in order that Styling can begin to release drawings to Fisher Body.
When the clay model is approved, Styling builds an inexpensive plastic model of the exterior. The plastic model is useful in checking the styling concept. Inevitably, the clay model looks bulkier than the car would actually be, but the plastic model can be painted to give the same light reflections as a finished car, and, indeed, with glass and simulated chrome trim, its exterior is almost identical with the finished product.
About eighteen months before production begins it is possible to make some calculations about the cost of the models. The size and estimated weight of the cars are known by then, and Fisher Body has begun to develop information on production-engineering costs —that is, the cost of the dies, jigs, fixtures, and so forth. It is generally Fisher's practice to begin estimating these costs even before the clay model is approved by the Engineering Policy Group. At this stage it becomes possible to weigh the sales appeal of certain features against their cost, and to modify the design if necessary. In recent years tooling costs have been lowered somewhat by General Motors' ability, in some cases, to utilize certain structural features and inner panels that are common to several different bodies.
When the Engineering Policy Group, Fisher Body, and the car divisions approve the clay and initial plastic models—often with some modification—the Styling Staff sets to work building new, much more elaborate plastic models, which are identical, inside and out, with the models that will come off the production lines. These reinforced plastic models were first used in an effort to build Motorama Show cars and other experimental cars quickly and economically. Later we began to use these plastic models just to give ourselves a "last look" at the cars we were putting into production. Until reinforced plastic was developed we had to make wood-and-metal styling models for this purpose, and it took as much as twelve to fourteen weeks to make one of them. The reinforced plastic models can be built in four or five weeks, which gives us more time to make tools and dies.
In the next six months or so the problem of co-ordinating work in the new models becomes very complex. While the final plastic model is being built, the Styling Staff sends drawings of major sheet-metal surfaces, and of such details as door handles and molding sections, to the car divisions and Fisher Body. As it gets this information Fisher Body moves ahead as rapidly as possible on the design of production tooling, beginning with the large and complex components—for example, the cowl, door panels, floors, roofs— and going on from there to the smaller and simpler parts.
About twelve months before production begins, the Engineering Policy Group must give its final approval to the design shown on the final, reinforced plastic model. Fisher Body can then finalize designs for the tools and prepare for their manufacture.
This Engineering Policy Group approval constitutes a general acceptance of the complete line of cars. From this point on, the car divisions work directly with Styling on the approval of specific details—for example, body moldings, trim, instrument panels, and, of course, on the front, side, and rear treatments developed by the individual styling studios. These details are also presented to the Engineering Policy Group for approval. At the same time, the car divisions will be building handmade experimental chassis for testing and giving Fisher detailed drawings of the chassis.
In other words, about one year in advance of the appearance of the cars in the dealers' showrooms, the major decisions of policy have been made— at least they have been if all has gone well. The Engineering Policy Group and representatives of Fisher Body, the Styling Staff, and the car divisions have reviewed the completed plastic models. Presumably, the models will have been approved. From here on, any substantial changes in the models will involve expensive reworking of dies and a variety of additional tooling costs, and also a serious loss of time, which could mean excessive preparation and production expense. Sometimes, however, these changes are unavoidable, because reviews after the first year may still uncover serious weaknesses in the proposed models. The divisional management and the chief officers of the corporation are now viewing the complete line of cars as they will appear in the showrooms and comparing them with the current fine of General Motors and current competitive lines. It is entirely possible that some of the body types which looked good in drawings, and continued to look good in the clay or first plastic models, may now require correction. And while changes at this stage are expensive, they may be less expensive than the lost sales resulting from an unappealing model. On more than one occasion we have had to choose one of these drastic alternatives.
Where in sum do we stand at this point, one year after work on the model has begun, one year before the public announcement date? Styling has completed its work on the fundamentals of the model. There are now in existence a number of reinforced plastic bodies which look exactly like the final cars. Styling is still completing work on new seats, instrument panels, interior trim, and new materials. However, the Styling Staff can defer for a while the decisions on upholstery materials, colors, and so forth so that it will be closer to the trend of taste at the time the new model goes on the market. Fisher Body is progressing rapidly on engineering drawings and on the design of dies and other production tools. Divisional engineering work on the new chassis is nearing completion, and the prototype chassis are ready for test. From this point on, Fisher Body and the car divisions must work closely together to assure proper co-ordination on the body and chassis work.
The production tooling phase is now ready to begin. The general managers of the car divisions submit their final "product programs" through the Engineering Policy Group to the president of the corporation. These programs describe the features of the new models—their performance characteristics; their dimensions; their estimated weights; their estimated costs, including the expenditures required for plant rearrangement, and tooling and equipment. The Engineering Policy Group further compares car specifications with those of the current models of competitors and again it weighs the attractiveness of the product against the costs involved in its production. The president, the chairman of the corporation, and the other members of the Engineering Policy Group review the new model program in its entirety. When they approve the program, each division submits an appropriation request for the approval of the group executive in charge of the division, for review by the vice president of manufacturing and then for the approval of an executive vice president, the president, and the Administration, Executive, and Finance committees. Then the manufacture of production tools gets under way.
The engineering departments of the car divisions now begin to release a vast number of drawings of the parts for the new cars. These drawings are forwarded to the master mechanics' departments for decisions on whether the parts are to be made or purchased (in some divisions this is determined by a "buy or make" committee); to the processing departments for preparation of routing sheets which detail the sequence of operations by which the part will be made; to the standards department for determining the direct-labor time allowances for each operation, and to the cost department, which sets up cost sheets on all items of labor and material cost. The manufacturing departments, along with the master mechanics' and plant-engineering departments, determine how the production lines are to be set up—what new machinery and equipment will be required and where it will be placed—and what plant rearrangement will be necessary.
By this time, too, the actual production engineering is well under way—among our outside suppliers as well as inside the corporation. As soon as we have finally approved the new models we consult with our many suppliers—of wheels, frames, rubber products, and so forth—in order to facilitate their engineering and development work and to help them plan their production.
Some seven to eight months before the new models are to go on sale Fisher Body will have completed the first prototype bodies, incorporating many hand-built parts. We can now put complete prototype cars together for test. We generally build a number of bodies for each model on a pilot fine at Fisher Body about three months before production. These bodies are built from production dies, so the pilot line provides a test of body-production dies and tools and an opportunity to train production supervisors. Many of these pilot-fine bodies are mounted on the prototype chassis and used for additional testing at the Proving Ground and in the engineering departments of the divisions. Finally, the cars that come off the pilot lines can be used by the Sales and Advertising sections for promotional purposes—for example, for advance showings to our dealers.
The production run itself is not started until about six weeks before the new cars go on sale. On the day the cars are formally introduced to the public our plants are, of course, rapidly attaining full production and many thousands of cars are already in the hands of dealers. The new-model program is over—and we are ready to concentrate more fully on the models that will reach the dealers one and two years hence.
The entire new-model program thus has three phases. Styling dominates the first year of the program; engineering design is continuous almost throughout the entire two-year period, with work ending just before mass production begins; equipment and tooling begin before Styling completes its work, and cover the multifarious and elaborate procedures required actually to make a car. The key point, perhaps, is the period halfway through the process, at the end of the first year, when the new design is approved and we "lock ourselves in" by beginning the production phase.
This is the way our procedure calls for new models to be produced, and this is the way, in large measure, they are in fact produced. However, no sooner do we "blueprint" reality than we begin to change it. In recent years the competitive situation has at times required us to produce a new model in somewhat less than two years. At the same time the increasing pace of competition has forced General Motors and other producers to speed up the rate of development of new design and engineering features. Naturally, when a larger part of a new car is "new," greater pressure is exerted on the process of design and the preparation for production.
We are continuously involved in this process of making a new and better car. Although the many complex steps over the long period between the conception of a new-model program and its execution are costly, they are worthwhile. For the annual model change is part of the very nature of the development of the industry. Since its earliest days, long before the expression "annual model" was used, the process of creating new models has generated the progress of the automobile.