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Many studies have been made of the automotive industry and its influence on economies and markets. As multibillion dollar operations the impact of business success or slowdown on the areas in which they function is significant. Material suppliers, workers, distributors and the customers themselves are affected when problems arise in the industry.

During the late 1970’s the USA saw financial controls heavily implemented in the largest car manufacturing business. This was at a time when overseas production interest were targeting the USA as a primary market opportunity and were able to introduce up to date manufacturing technology as a partial means of maintaining lower priced yet high quality products. Paralleling this manufacturing thrust, the integrations of perceived financial over control was occurring in the USA leading to a highly non competitive situation for the domestic manufacturers as they appeared to forego response to customer needs and wants in favors of tight company financial controls including expenditures on research and product development. Where the bottom line became more important than the response to the market or the customer, the business and the industry suffered a loss of business share. In the sort term, however, the corporations showed good performance in the long term, positions deteriorated.

Just in time, the business retracted closed the various capital city sales offices and concentrated on supplying a selected number of major customers with good service. The images of company success: aircraft, boats, and vehicles were turned in and the management dwelt on carefully handling inventory integrating correct financial controls and offering proper support the customer. It took three years to recover from the commitment incurred during the initial period of operating optimism but the business is now profitable and very tightly managed with financial information that can provide daily performance and forecasting information. It was very close and the management learned that writing history for later reading wasn’t as essential as writing a realistic Plan and adhering to it.