Ford v Ferrari

Any reader of this blog understands my fascination, bordering obsession, with the Ford Motor Company.  It was impossible growing up in Detroit, as I did, without feeling the dominance of the auto industry.  Families tended to be Ford or GM oriented depending on the number of family members that worked at those companies.  Watching the Ford v Ferrari (2019) film several times in the past month has, of course, motivated me to write about the company once more.  I am sure it will not be the last time either.

My maternal grandfather worked for Ford and my mother was always enamored with Ford.  He was a factory worker in the foundry.  My mother was so proud when I got my first full time job at Ford.  I too was enamored since I had gone to school at the University of Michigan – Dearborn which was built on Henry Ford’s Fairlane Estate.  It was hard to be in Dearborn and not feel the impact and attraction of the Ford Motor Company.  The company headquarters, The Glass House, is the tallest building, I believe, in Dearborn.  The Henry Ford Museum and Greenfield Village also adds to that mystic.  My sister Ani also worked at Ford.  The family of my mother’s brother, Azad, was in contrast a General Motors family.  My uncle and my cousins Sandy and Ralph worked at the Cadillac assembly plant in Detroit.

When I started at Ford, I had the same feeling as everyone that worked there.  I would work there my entire career.  I would retire and then collect a most generous pension (something like 60% of the last few years average salary and lifetime health insurance).  Basically, people believed and valued the notion that if you dedicated your working life to Ford, Ford would take care of you all your life.  It was a wonderful deal but that pension system was truly a post-war economic bubble that began to collapse in the 1970s and 80s.  These days, with the pension non-existent for current employees and a stock that has been flat and subpar in the 2000s, a 401K based retirement is a poor substitute for wonderful pension and stock performance that was available when I was working there.

Ford v Ferrari is about how Ford tried to buy a financially distraught Ferrari in the early 1960s.  Ford believed the deal was in the bag, but lost out as Ferrari and Fiat forged a deal behind the scenes.  Enzo Ferrari, per the film, insulted Ford cars and the grandson of the founder, Henry Ford II, who was then running the company.  The Deuce, as Henry Ford II was affectionately known, vowed to get revenge by beating Ferrari in Formula One on the track, specifically LeMans, where Ferrari had ruled for a several years.  To do this, Ford teamed up with Carroll Shelby the legendary racer and race car builder.  Shelby enlisted driver and designer/ace mechanic Ken Miles to help achieve Ford’s goals.  The movie shows how they accomplished this while navigating the Ford corporate culture of that era.

The Ford v Ferrari movie highlighted Ford leaders in the 1960s that I have only read about:  Henry Ford II and Lee Iacocca.  I have no idea what The Deuce was really like, but the bold and brash portrayal by Tracey Letts seemed very credible to me.  He took over the company at the age of 28 and modernized and saved the company from the bizarre and out of date way it was run by his grandfather.  By the time he retired in 1979, the company was ready to embrace the sound leadership of Philip Caldwell and Don Petersen that was capped by the famed Ford Taurus.  The film made Iacocca into a more timid character than I would have imagined, but perhaps in those times before he ascended to the presidency, he was more reserved.

The third executive was Ford Executive Vice-President, Leo Beebe.  Beebe was the antagonist to the protagonists, Carroll Shelby and Ken Myles, in the film.  Played by Josh Lucas, Beebe came off as the ultimate conniving corporate suck-up in the film.  Hollywood needs antagonists in such films and they chose Beebe for that role.   A November 14, 2019 article in the Philadelphia Inquirer paints a more favorable picture of Beebe.  This character in the film exemplified everything I thought was wrong with Ford when I worked there from 1976 to 1983. 

Witness this exchange: 

Ford:  Give me one reason I don’t fire everyone associated with this abomination, starting with you?

Shelby:  Well sir, I was thinking about that very question as I sit out there in your lovely waiting room.  As I was sittin’ there, I watched that little red folder, right there, go through four pairs of hands before it got to you.  Of course, that doesn’t include the twenty-two or so other Ford employees that probably poked at it before it made its way up to the 19^th floor. With all due respect sir, you can’t win a race by committee.  You need one man in charge.

And a few moments later:

Ford:  See that little building down there?  In World War II, three out of five US bomber rolled off that line.  You think Roosevelt beat Hitler?  Think again.  This isn’t the first time Ford Motor has gone to war in Europe.  We know how to do more than push paper.

Ford pushed a lot of paper when I was there.  They had too many layers of management and the people that got ahead were mostly interested in their own careers and not making the best cars they possibly could.  They didn't have to make the best cars because there was no competition.  They sold everything they made.  The Leo Beebe character in the movie represented all of that.  Carroll Shelby summed it up brilliantly in talking about “that little red folder” and the no doubt circuitous route it took to get to the Deuce’s hands.  All of that routing and poking at such folders, made all decisions take unnecessarily long.  All the layers of management chiming in on the contents of the folders to have the right political tone to the contents, made the contents and hence the decisions lame.  It is no wonder that Toyota and others entered the market and stole share from Ford and GM. Of course, this is my perception from forty years ago.

I really liked the movie and will no doubt watch it again.  Beyond what I have wrote about here, the story of Shelby and Miles and what they accomplished with Ford's backing and input was amazing.

Know Your Lane

https://pxhere.com/en/photo/622467

Earlier this year, a friend of mine was rudely berated online.  It had to do with my friend’s avocation.  The person who attacked him was educated in the field and considers himself a professional.  The attack, using no profanity, was personal, slanderous, and totally uncalled for.  The administrator of the site on which this happened deleted the offensive post within an hour of it being posted. 

My friend had called me to tell of the incident.  He read the post to me and stated, “I am very well aware of what lane I’m in.  I know my place and try not to pretend to be anything I am not.” 

No matter what your field of endeavor is, there is a distribution of skill and expertise within that field.  For most of us, there are always people doing better and worse at whatever it is you do or like to do.  For the overwhelming majority of us, it is a simple fact that there are always more talented people and less talented people working in your chosen field.  Using my friend's analogy, there are always people in the faster lanes and the slower lanes than yours.  It matters not if your field is business, fine arts, sports, mathematics, writing, jurisprudence, music, history, acting, engineering, medicine, or whatever the field.  Even in each of these fields there are so many sub=fields and categories where people earn a living at or are otherwise engaged in the endeavor as a serious habit.   Consider sports, there are countless numbers of sports from the lifelong sports of golf and tennis to those reserved for the youth such as football and rugby.  There is weightlifting and curling, water skiing and marksmanship, horse racing and horseshoes; the list is seemingly endless.  The same applies to music.  There is classical, folk, jazz, pop, hip hop and more, which can then be broken down further by geography.  Mathematics?  At the highest levels, people specialize in many specific kinds of algebra, topology, number theory, or analysis.

People devote themselves to their vocations or avocations with different degrees of vigor.  People are blessed with a wide range of natural, innate, talent for what they choose to do.  Very few people become well-known and well-regarded.  Even fewer become renowned.  Sometimes this positive notoriety has less to do with training and talent than it has to do with self-promotion/marketing and persistence.  There is a wide range to these various dimensions and the correlations between them are, in my view, fuzzier than most people think.

To make this all more complicated and messier, basically making it more human, we layer on top of all this personality types and egos.  Security/Insecurity, contentment/envy, and believing you are greater or worse than you really influence how you will treat people in your chosen field.  Have you grossly underachieved in your chosen field versus your expectations?  You may still act as if you are a peer to the best in the field and they may politely tolerate you.  You may lord your talent and skills over those who you perceive as lesser than yourself.  Somehow making others feel bad makes you feel better.  This is the “for me to be a success, you need to fail… and I will help you do so” mindset.

Is everything a zero-sum game?  To some degree yes, and, for me, to a larger degree no.

Perhaps, you are content with where you are.  You are happy in your lane.  You admire and appreciate those in the faster lanes, the passing lanes, the "excelling as you wish you might" lane.  You are kind, encouraging, and actually help those who aspire to be in your lane.  This is the “come on, let’s all strive to be better, help each other to do so, and thus make the whole discipline better” mindset.

Between these two extreme mindsets lie the vast majority who just want to do what they do and not be harassed by the overbearing, ego-driven, I win-you lose mindset.  Certainly, in this mindset, there are driven overbearing leaders, e.g. Steve Jobs, that push everyone to achieve more than they thought they were capable of.  They might not be appreciated in the heat of battle, but much more so years later when reflecting back on your accomplishments.

In every profession, in every vocation and avocation, these mindsets exist at close to the same proportions.   

So, know your lane and mindset. 

At the same time, there is no reason you shouldn’t aspire, strive, and work to change to a faster lane and to improve your mindset.

Çidem İnç: Aya Sofia becomes a Mosque… Again

When it was built by Justinian in 537, Hagia Sophia or Aya Sofia (Church of Holy Wisdom) was the grandest structure in the entire world.  It was the largest bulding in Constantinople.  If not the largest building in the world, it was the largest building, by far, in the region.  Today, the world is full of bigger, taller, and perhaps more spectacular buildings.  Yet, the grandeur and majesty of Aya Sofia still impresses.  It impressed me on April 13, 2010 when I visited and toured this great wonder of the world.

This church was converted to the Ayasofia Mosque in 1453 when the Ottomans conquered Istanbul.  It was a most impressive symbol of the conquering forces that ruled the city and built an empire that lasted until World War I.  The Christian motifs and frescos were plastered over.  In 1935, Mosque was “secularized” into a museum.  It was a museum the day I visited.  Later that day, back in my hotel room, I wrote:

I heard there is a movement to make Aya Sophia into an active mosque again. I would love to see this grand building become a religious center again. I will reveal my complete naïveté and total optimism by wishing it could be both. I would love to see the Greek Orthodox and Moslems using it for high holidays. It would be great but I realize the very low probability of that happening.

Today, a bit over ten years later, it was announced Recep Tayyip Erdogan, the President of Turkey, issued a decree that will result in the Aya Sofia Museum being transferred to the Presidency of Religious Affairs.  The museum will close, the frescos which were in the process of being restored will be presumably be plastered over again, and the Holy Mosque of Aya Sofia will be open for prayers on Friday, July 24^th. 

With Siragan Magar
April 13, 2010

Erdogan has wanted to do this for many years.  There have been many postings on social media claiming he is playing to his supporters to strengthen their support in view of the economic woes and unemployment facing the country.  There is no doubt in my mind that this is a calculated move on his part.

In 1935, Aya Sofia was made a museum by Turkey’s first President Kemal Ataturk who advocated for a much more secular country.  Erodogan advocates the opposite.  In doing this, Erdogan continues to undermine the image and reputation of Ataturk in favor of his vision of himself as an Ottoman Sultan.

Aya Sofia is a UNESCO World Heritage site.  UNESCO has expressed concern about the move they were not consulted about.  Naturally, Greece opposed the move as Aya Sofia was the premier cathedral of the Greek Orthdox Church before it was converted to a mosque the first time.

US Secretary of State Mike Pompeo urged Turkey to keep Aya Sofia as a museum. 

Erdogan has expressed annoyance at international opposition to the plan, led by neighbor Greece. "They say 'don't convert Aya Sofya into a mosque,'" he said in an interview with state broadcaster TRT on July 5. "Are you ruling Turkey or us? Turkey has institutions. If that step [is] to be taken It is obvious who has authority to do that."  ~CNN

It is their country.  He is the leader, some might say dictator, of Turkey.  They get to do what they want.  Other countries have complained but to what avail?  Spokesmen for the Turkish government have said the policy is to protect all minorities, allow freedom of worship, and other things that I am certain Armenians, Greeks, Assyrians, Syriacs, and Jews might take exception to.  I am sure the Kurds would also take exception to these claims.  The country is 99.5% Moslem today.  In 1910, maybe the same geography was 75% Moslem.  What happened to the 24.5% non-Moslems?  Where did they go?  And, why?  Where did all the Armenian Churches go?  They were destroyed.  Aghtamar was restored and made into a museum.  Might Erdogan make it a mosque?  Many would complain… loudly.  But, truly who could stop him.  Surp Giragos Church in Diyarbekir was in ruins for many years.  It was restored as an Armenian Church in 2011.  In February 2016, it was again ruined during armed clashes between the Kurds and the Turkish Army.  It is unclear if it will be restored any time soon as the Turkish Government confiscated the property.  Did the world express outrage?  Armenians for sure did, but the Turkish Government has a long history of ignoring Armenian complaints.

I still stand by what I wrote ten years ago.  I proudly aspire for a world where Aya Sofia could be shared as a place of worship for both religions if not all religions.  Something like that will never happen in my lifetime.  In a few days, Aya Sofia will again be a mosque and the vast majority of us will move on to whatever next issue becomes a top news story. 

Erdogan gets his way in Turkey to maintain power.  It is that simple.  Whether he is viewed as a patriot or despot depends on ones ethnicity and religion. 

Çidem İnç indeed.

Both photos from my April 13, 2010 visit.
It is truly an amazing place.

No! Not Brooks Brothers...

Brooks Brothers has been in business for 202 years.  They are the oldest apparel brand in the US.  They filed for bankruptcy today.  They join a growing list of struggling retailers who have declared bankruptcy during this pandemic.  Clearly, the pandemic accelerated the demise these companies.

The retail industry has been in a state of change since the dawn of this century.  Amazon has driven the convenience, economy, and ease of online shopping at the expense of traditional retailers.  These traditional retailers, referred to often as brick and mortar stores, have struggled to keep up with Amazon for two main reasons. 

First, Amazon’s website is very easy to navigate for customers in terms of both finding what they want.  It is even easier to place orders with them.  Thus, one can shop at any hour of the day from any place one is connected to the internet.  It is super easy and convenient.  The websites of most other retailers, based solely on my experience, are more cumbersome to use in terms of searching, ordering, and order management.  I never bought anything online from Brooks Brothers though I often browse their website.

Second, and maybe more importantly, Amazon’s warehouses and distribution system is expertly designed to handle and fill online orders.  The warehouses and distribution systems of traditional retailers are designed to fulfill stores where most of their sales occur.  This is a huge edge and provides Amazon with advantages in terms of cost and time.  I am not sure how Brooks Brothers is positioned in this regards.  Given their bankruptcy filing, it is logical to surmise that their online sales are still very low.

I was sorry to hear Brooks Brothers had filed for bankruptcy.  Frankly, I was taken by surprise.  I revered the brand and always assumed that Brooks Brothers would be the gold standard of men’s clothiers for executives.  Therefore, I assumed they would be around for another 202 years offering classic fashions of high quality to discerning clientele.   

Brooks Brothers dressed American businessmen and leaders in suits, white shirts, and repp ties for many years.  As the articles about the bankruptcy noted, Brooks Brothers survived the change to business casual but not the Covid-19 pandemic when business attire became extremely casual.   

I have friends that shopped Brooks Brothers exclusively.  I have aspired to do the same for forty years but have never actually become that loyal customer I thought I should be.  I have a dozen button down and polo shirts, a half-dozen ties, an overcoat and raincoat.  I have no suits, slacks, or sport coats.  Their prices are simply exorbitant to me.  I can buy three or four sports coats at Jos A. Banks or other clothiers for the price of one Brooks Brothers one.

Brooks Brothers was known for making their clothes in the US.  Even today, some small percentage of their suits, ties, and shirts are still made here.  They were American owned until 1988.

Brooks Brothers was acquired by the British retail chain Marks and Spencer Group PLC in 1988. It was sold in 2001 to Retail Brand Alliance Inc., which was controlled by Mr. Del Vecchio, whose father founded Luxottica Group SpA, the Italian eyeglass maker. It changed its name to Brooks Brothers Group Inc. in 2011. ~ WSJ

Mr. Del Vecchio did focus on the classic looks roots of the brand.  He insisted on quality designs and fabrics.  Combining this with domestic and Italian production accounted for the exorbitant prices.

They are currently seeking a buyer for the company.  Only time will tell if the brand will retain its classic heritage and quality or if the new owners make it more mainstream and less exclusive.  A few of the suitors mentioned in the article are definitely known for doing the latter.

Meanwhile, Amazon continues to gain share in the retail clothing business.  They have their own house brand, AmazonBasics, and sell other brands.  Their prices are amazing and I have no doubt they will continue to grow in this sector.  Perhaps, they will consider purchasing and “Amazoning” Brooks Brothers.

A tweet capturing another perspective
in line with the times...