Engineering vs Wall Street
Engineering a solid High Tech Company
Introduction
The problems at Boeing, GM, Ford and others are contrasted with the likes of SpaceX, Tesla and more.
Profit vs Engineering
Boeing used to be a company that produced great airplanes based on solid engineering principles and excellent business practices. The same could be said for GM and Ford. New comers to the scene like SpaceX and Tesla are outperforming the older companies for several reasons but chief among these are a significant emphasis on Wall Streets demand for profits and financial incentives at the expense of solid old school type great engineering and a corporate culture based on engineering excellence and not on bean counting and scrimping on the cost of every part.
Let's review a few examples of bean counter vs engineering.
GM and the ignition switch fiasco. GM tried to save a few pennies, I have heard not even a dollar on each ignition switch for some of the models being produced. The switches failed and caused problems and deaths. The lawsuits resulted in severe penalties and or bankruptcy of the GM. All to save a few cents. Let’s be clear, ignition switches are not rocket science. Building a good one, safe, reliable and…
