The Auto Crisis is Economic Darwinism

Business consultant BJ Gallagher worked with automakers in the 90s. She says it was clear then that the BigThree had lost touch with what their customers wanted. “They were blind to a changing world, while competitors from Japan were eating into their market share. For more than 20 years, Japan has produced higher quality vehicles for lower prices while Detroit has produced inferior products at higher costs. In a free market, the mantra is ‘change or die.’ It's economic Darwinism – survival of the fittest.” Gallagher has worked with Chrysler, Nissan, Infiniti, and Volkswagen as well as non-automaker clients. She says many companies are experiencing the same problems as the automotive industry – that is, a failure to change and adapt to new competitive pressures. She is the author of “A Peacock in the Land of Penguins.”

Scott Drake talks with B.J. Gallagher