Alfred P. Sloan quotes
I have already remarked that the 'theory of scarcity has been a dominating influence in many of our economic policies. In the case of taxation, however, there is involved the 'theory of plenty' and there must now be involved the 'theory of plenty more.' Every dollar of the billions that are being indiscriminately spent without accountability is a mortgage on the income, the savings, as well as the security of the people. There must be brought home to the consciousness of all that the more the government takes, the less each one has no one can possibly escape.
Alfred P. Sloan
Let me tell you about what we call our field trips. It may surprise you to know, that I have personally visited, with many of my associates, practically every city in the United States, from the Atlantic to the Pacific and from Canada to Mexico. If any of you has done this, you realize what big a country it is. It has taken me weeks and weeks of the hardest kind of work and continual travel to accomplish this. I which that my duties were such that I could do more of it; and I am trying to arrange my affairs so that I can. On these trips I visit from five to ten dealers a day. I meet them in their own places of business, talk with them across their own desks and solicit from them suggestions and criticisms as to their relations with the Corporation; the character of the product; the Corporation's policies; the trend of consumer demand; their viewpoint as to the future, and many other things that such contact makes possible. I solicit criticism of anything and everything.
Alfred P. Sloan
The transformation of the automobile market was essentially complete in 1929. If Mr. Ford, in that pivotal year in the modern economy, still held stubbornly to his old concept in his new Model A, he was counterbalanced by Mr. Chrysler, who had come up from nowhere with tremendous vitality and with a market policy similar to General Motors'. The fact that Mr. Ford built nearly two million of the five million U. S.-produced cars and trucks sold that year was only incidental from the long-term point of view. it was a splurge, not the sign of a trend.
Alfred P. Sloan
First let us ask whether our wealth-creating agencies, particular that of industry, are to be based upon private enterprise of policy management. I can not see how any intelligent observer can have any possible faith in the capacity of political management to provide either stability or progress if it should set out to operate the agencies of wealth creation, particularly industry. It is my firm conviction that any form of 'Government Regulation of Business' is bound to result in an ever-increasing interference with the broad exercise of initiative - the very foundation of the American system. That is the natural evolution of bureaucracy. If that be so, might not the ultimate logical result be the necessity for the socialization of industry through the break down of the profit system induced by the accumulative effect of the ever-increasing political management. We do not need to go far afield to see definite evidences of that possibility.
Alfred P. Sloan
It looks as if the war in Europe is rapidly moving towards a conclusion. Probably I am wrong about that but I can't see how it can be otherwise. It seems clear that the Allies are outclassed on mechanical equipment, and it is foolish to talk about modernizing their Armies in times like these, they ought to have thought of that five years ago. There is no excuse for them not thinking of that except for the unintelligent, in fact, stupid, narrow-minded and selfish leadership which the democracies of the world are cursed with.
It is all very well as everybody is in the same position, but when some other system develops stronger leadership, works hard and long, and intelligently and aggressively-which are good traits-and, superimposed upon that, develops the instinct of a racketeer, there is nothing for the democracies to do but fold up. And that is about what it looks as if they are going to do.
Alfred P. Sloan
Starting in 1918 at General Motors I found to my surprise] that if I followed the prevailing practice of intercorporate relations I would no longer be able to determine the rate of return on investment for these accessory divisions individually or as a group. This would necessarily mean that I would lose some degree of managerial control over my area of operations. At that time, material within General Motors was passing from one operating division to another at cost, or at cost plus some predetermined percentage. My divisions in the United Motors Corporation had sold both to outside customers and to their allied divisions at the market price. I knew that I operated a profit-making group, and I wished to continue to be able to demonstrate this performance to the general management, rather than to have my operating results on interdivisional business swallowed up in the extra bookkeeping profits of some other division. It was a case of keeping the information clear.
Alfred P. Sloan
Having been connected with industry during my entire life, it seems eminently proper that I should turn back, in part, the proceeds of that activity with the hope of promoting a broader as well as a better understanding of the economic principles and national policies which have characterized American enterprise down through the years.
Alfred P. Sloan
Some see danger in bigness. They fear the concentration of economic power that it brings with it. That is in a degree true. It simply means, however, that industrial management must expand its horizons of responsibility. It must recognize that it can no longer confine its activities to the mere production of goods and services. It must consider the impact of its operation on the economy as a whole in relation to the social and economic welfare of the entire community. For years I have preached this philosophy. Those charged with great industrial responsibility must become industrial statesmen.
Alfred P. Sloan
I then went on to suggest that we make a serious effort to gauge the demand over the next five to ten years, and make plans to meet that demand. In building new facilities, I suggested that we "use corporation funds for such new plants needed for armament if that gives us better control over same from the long term position in relation to the master plan." Accelerated depreciation made the use of corporate funds all the more feasible, and relieved the government of the necessity of providing capital for the plants.
Alfred P. Sloan
