Monthly Archives: December 2012


Recently my friend +Jonny Lieberman flew over to Germany to build an AMG V8 6

Recently my friend +Jonny Lieberman flew over to Germany to build an AMG V8

Jonny went to the AMG factory in Affalterbach to build one of the lovely 6.2-liter V8s that go into high-performance +Mercedes-AMG models and it was captured on video. A few years back I went to nearby Wixom, MI to build a supercharged 6.2-liter LS9 V8 for a Chevy Corvette ZR1 
http://www.autoblog.com/2009/11/17/autoblog-builds-an-ls9-for-someones-corvette-zr1/

After watching the +Motor Trend Magazine video I see that the build process is pretty much the same as what you'll find at the GM facility or the special line Ford has at its Romeo, MI engine plant for Shelby GT500 engines. Each of these marvelous pieces of machinery are built by individual technicians who affix a plate with their name at the end of the line. 

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Unlike the atrocious Bravo reality show, this could actually be fun 

Unlike the atrocious Bravo reality show, this could actually be fun 

‘King of the Hill’ creator Mike Judge to shoot ‘Silicon Valley’ pilot for HBO next year
Silicon Valley has already been documented in its own reality TV show on Bravo, and now HBO is looking to use the same premise for a live-action series. Deadline reports that King of the Hill and B……

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A great analysis of how Apple may have sown the seeds of its own demise by outso…

A great analysis of how Apple may have sown the seeds of its own demise by outsourcing

This is a cautionary tale for any company that makes and sells stuff in any industry.

Up until about 15 years ago, Apple manufactured the products it sells in its own factories. Aside from buying commodity parts like memory chips, drives and processors, it actually put everything together itself. 

Aside from paring down its product lines and designing desirable pieces, the real key to Apple's enormous profitability has been the outsourced manufacturing process Tim Cook put in place. As James Allworth describes in his article, this process has taught suppliers like Foxconn and Samsung a lot about how make huge numbers of gadgets very efficiently. 

That is almost certainly a major part of why Samsung is the only cell phone maker besides Apple to generate any significant profits in recent years. 

These lessons don't apply exclusively to the technology industry. Beginning in the early 20th century, +Ford Motor Company and then +General Motors became huge and profitable in part through tremendous vertical integration. In recent decades, they increasingly outsourced component and system manufacturing and even engineering. While they had plenty of internal problems, relying increasingly on suppliers means that you lose control of things that could be a competitive advantage. 

For example Ford was dependent on Aisin Saiki for the the first generation of transmissions for its hybrid Escape and Fusion. Aisin is an affiliate of Toyota and as a result, Ford couldn't get enough supply and it paid higher prices for transmissions, limiting the number of hybrids it could sell even as Toyota's hybrid sales went through the roof. 

For the new 2013 C-Max and Fusion, Ford decided to in-source the major hybrid components, thus enabling higher volumes and 30% lower costs. Ford and other automakers are recognizing the issues with outsourcing and are now increasingly reversing course. 

The real threat that Samsung poses to Apple
[The following is a post written by James Allworth. James is the co-author of How Will You Measure Your Life?. He has worked as a Fellow at the Forum for Growth and Innovation at Harvard Business S……

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Mainstream media has become so beat down by accusations of liberal bias that they…

Mainstream media has become so beat down by accusations of liberal bias that they are now petrified of calling out blatant lies

No matter how a journalist personally feels about abortion, gay marriage or taxes, they should never ever be afraid to stand up and call any politician a liar. Calling out someone for dishonesty is not about bias, it's what any self-respecting journalist should be doing as a matter of course.

How the Mainstream Press Bungled the Single Biggest Story of the 2012 Campaign
Fearful of appearing biased, the elite political press failed to call sufficient attention to the Republican Party’s radical agenda and disdain for facts. The result is that in the name of balance, th…

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