Automotive News - May 19, 2008 - (Page N7)

MAY 19, 2008 • N7 NISSAN’S At Ford, he was frustrated by bureaucracy and labor tension. Then Nissan came calling. The result was Japanese quality in America. 50 Years in America Hourly workers were called technicians. Executives and employees dined in the same cafeteria and parked in the same unreserved lot. And everyone, even Runyon, wore a uniform with his or her first name stitched on the breast pocket. Runyon retired from Nissan in 1988 — but kept working. As chairman of the Tennessee Valley Authority from 1988 to 1992, he earned the nickname “Carvin’ Marvin” for slashing the utility’s payroll by a third. As postmaster general of the U.S. Postal Service, he eliminated a projected $2 billion deficit in his first full year in office. Runyon died in Nashville in 2004 from pulmonary fibrosis. He was 79. His widow, Sue Atkinson, said that despite Runyon’s multiple careers and 37-year tenure at Ford, he ultimately considered himself “a Nissan guy.” — April Wortham T he picture was one of Marvin Runyon’s favorites. Taken June 16, 1983, it shows workers at Nissan’s new Smyrna, Tenn., assembly plant smiling and applauding as their white-haired CEO drives the first American-made Datsun truck off the production line. Runyon’s right hand is on the wheel, but it’s his left that tells the story. Raised in a high fist, it exudes equal parts victory and defiance: Not only could Americans build a product with quality equal to or better than Japanese products; they could do it without the hidebound precepts of the Detroit 3. Starting from scratch, Runyon melded the best of Japanese and American management styles to establish Nissan manufacturing in the United States. Runyon was well-versed in the Detroit way. He was born in Texas, and in 1943, he joined his father at Ford Motor Co.’s Dallas assembly plant as a line worker. By the time he took early retirement from Ford in 1980, he had become vice president of body and assembly. And like many Detroit managers at the time, he was frustrated with what he saw as bureaucratic business practices and unreasonable labor demands. MARVIN RUNYON Earliest Nissan involvement: 1980 Role: Established Nissan’s manufacturing operations in the United States Key influence: A former Ford manufacturing executive, he took the best of both worlds, American and Japanese, to build top-quality Nissans in America. other Japanese automaker was building vehicles in the United States. “There really wasn’t any information available,” said John Schnapp, a former automotive consultant whose firm did some early planning studies for the Smyrna plant. “He invented it.” Best of both worlds Nissan executives understandably were nervous about handing over their first manufacturing venture outside of Japan to an American. Yoshikazu Hanawa, the lead adviser sent from Tokyo to help get the plant off the ground, said Nissan President Takashi Ishihara’s orders to Runyon were clear and simple: From the first model that rolled off the line in Smyrna, the quality and cost of the vehicles had to be the same as those made in Japan. The rest, Ishihara said, was up to Runyon. Said Hanawa: “This is really rare for a Japanese top executive. They are totally into micromanagement or talking about introducing the same management scheme into the U.S. But he never said that.” Hanawa later became chairman of Nissan Motor Co. But where to start? At the time Nissan decided to build the Smyrna plant, no Runyon’s game plan was to pull from the best of American and Japanese management philosophies. Starting from scratch Then Nissan came calling. The Japanese automaker offered Runyon the once-in-a-lifetime chance to build a manufacturing operation from scratch. “You don’t get the chance to do that much in the car business — start with a clean sheet of paper,” says Jerry Benefield, another Ford executive whom Runyon handpicked as his No. 2 man for the Smyrna plant. 2 The 1500 w as the first sexy sports car from Japan. The thre “were mecha e models nically superior to the MGAs and MGBs, ” says Keith Martin, publ isher of Sports Car Market. The Datsuns ha d heaters and radios — “virtual Cadillacs co mpared to their sparta n English brethren.” 1961-69 Datsun 15 1600, 200 00, roadsters 0 To boost sales, Datsun needed racetrack credibility. Pete Brock delivered by whipping the competition with the 240Z and 510. I PETE BROCK Earliest Nissan involvement: 1968 Role: Owner, Brock Racing Enterprises, 1965-73 Key influence: Brock Racing established Datsun’s racing reputation with a string of major victories in the early 1970s. n the 1960s, Datsun was known mostly for inexpensive sedans and pickups. But Yutaka Katayama, president of Nissan North America, was a racing fan. And in 1969, Datsun added the sporty 240Z to its lineup. Enter racer Pete Brock. Brock Racing Enterprises put the Datsun 240Z and 510 on the map — and helped turn them into hot sellers — by regularly thumping the competition in the early 1970s. Brock was close friends with Katayama, who hired him for the 1968 season. Brock’s credentials were certainly in order: He had been hired as a designer at 19 by General Motors and in the early 1960s had designed the first Cobras for Carroll Shelby. Brock was personable and multitalented. After disbanding Brock Racing in 1973, he turned to designing hang gliders and building a successful parts business. Now 71, he’s a freelance automotive writer and photographer in the Seattle area. — Jeff Mortimer

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Automotive News - May 19, 2008 Ford eyes smaller F-150 cousin Sonic: Mercedes tries to 'extort' store upgrades Chrysler seeks 25% slash in parts prices Dealership managers pushed Chrysler's latest incentive Crain names 4 new VPs Automotive News staffers win Wheel Awards GM will keep cutting sales to fleets GM studies the future of full-sized trucks American Axle plans to expand in Asia At Lexus, the sales laggards are cars VW positions Tiguan as 'GTI' of small SUVs Tata enters race for 100-mpg car Harley Earl was the daddy of auto design Focus will follow Fiesta as a global vehicle Lexus shows how it sweats details Industry slows tide of state CO2 rules Chevy tweaks Cobalt to add fuel economy Be careful; don't do anything dumb Looking ahead to different industry They thought they knew everything Cerberus doesn't belong in autos Dealers as scapegoats Smart, steady growth works best for suppliers Farley's smart to value Ford's heritage Absurd logic in the U.S., cowardice in Germany BMW, Daimler keep a wary eye on U.S. economy James Franey Dealers' approach can lessen pain of staff cuts GM plans to distinguish Opel with image makeover Make or buy? Software can estimate costs for company Honda, Toyota see robots in their futures Bosch aims to lead in hybrids technology King of hearts Clarke aims to get GM back on track in N.A. Fields navigates Ford through 'white water' LaSorda steers Chrysler's global ventures Toyota's Lentz: A crash course in hard times Truck sales fall 13% in April Modine sells Thermacore unit Alcoa to close Mexico plant Toyoda Gosei expands in Mexico Hayes Lemmerz plans to close Georgia factory Japan's sales slide 2% in 1st quarter; output climbs Dealers Hyundai let U.S. direct Sonata freshening After .com and .edu, is it time for .car? Panoramic sunroof of Lincoln MKS boosts Inalfa sales Chrysler hedged gas price bet Smart phones help dealerships retain customers CAW completes pacts with GM, Chrysler early GM, UAW resolve 2 disputes New media buyer for Chrysler Visteon names Stebbins CEO Convertible registrations drop Ferrari: From denial to debut Buildings Porsches in U.S.? Depends whom you ask Toyota will go slow in Tupelo Ghosn is glum on prices, U.S. sales prospects Pischetsrieder has earned a celebratory cigar NHTSA spins VINs, averts meltdown F_RD GU_S WI_ BUI-_KS 50 PEOPLE FOR 50 YEARS Yutaka Katayama Clarence Talley Jim Morton Pete Brock Marvin Runyon Yoshikazu Hanawa Bill Bruce Shin Maki Jack Collins Mitsuya "Scape" Goto Bob Link Soichi Kawazoe Jerry Hirshberg Takashi Ishihara Roy Rogers John Parker Bob Thomas Teruo Uchino Morrie Sage Bob Thomas Nobe Wakatsuki Earl Hesterberg Carlos Ghosn Lee Clow Jerry Benefield Yutaka Kume Doug Betts Tim McCarthy Jed Connelly Atsushi Nakatsuji Dave Hubbard Joe Opre Patrick Pelata Yoshiyuki Kimura Diane Allen Mad Mike Taylor Chuck King Larry Dominique Mark Igo Mitsuhiko Yamashita Shiro Nakamura Tom Mignanelli Dick Roberts William Cushing Emil Hassan Chester Luby Jane Nakagawa Louis Schweitzer MR. K Ray Lemke Richard McCutcheon

Automotive News - May 19, 2008

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