MrFedEx
Engorged Member
I've mentioned it before, but Fred has really accelerated the pace of de-contenting at the Express opco. De-contenting is usually used in the manufacturing-type industries, and it is basically a cheapening of the product by substituting lower-quality materials or processes and then attempting to market the product at the same price as before, supposedly to boost profits, which it does, but only until consumers discover they've been conned.
GM did this to it's vehicles in the late 70's and through the mid 80's...with disastrous results. GM already had a shaky reputation, and when they started de-contenting their vehicles, their reputation sunk like a stone. Remember some of the tricks? Lighter-gauge sheet metal, elimination of steps in the painting process, particle board interior panels and many other steps that created really crappy cars. Plus, they assembled them with terrible quality control, with poorly-fitting body panels, drippy paint jobs, and mis-matched interior panels. Finally, GM figured it out and started building better products. But there are a lot of people who were burned who will never buy GM again...an expensive lesson.
I see many parallels at FedEx. As they gut the quality out the company as quickly as they can, they are also cutting costs. But at what expense long-term? We insiders know that FedEx is a joke these days when it comes to providing superior service, but the public doesn't...not yet at least. I see the day coming where FedEx "pulls a GM", and then spends the next 20 years trying to rebuild a decent reputation.
GM did this to it's vehicles in the late 70's and through the mid 80's...with disastrous results. GM already had a shaky reputation, and when they started de-contenting their vehicles, their reputation sunk like a stone. Remember some of the tricks? Lighter-gauge sheet metal, elimination of steps in the painting process, particle board interior panels and many other steps that created really crappy cars. Plus, they assembled them with terrible quality control, with poorly-fitting body panels, drippy paint jobs, and mis-matched interior panels. Finally, GM figured it out and started building better products. But there are a lot of people who were burned who will never buy GM again...an expensive lesson.
I see many parallels at FedEx. As they gut the quality out the company as quickly as they can, they are also cutting costs. But at what expense long-term? We insiders know that FedEx is a joke these days when it comes to providing superior service, but the public doesn't...not yet at least. I see the day coming where FedEx "pulls a GM", and then spends the next 20 years trying to rebuild a decent reputation.