The Reckoning

I read a borrowed copy of this book over a decade ago and it has proven memorable and useful.
Memorable because 12 years after reading it, I still vividly recall many episodes: for example, we read of the American engineer and his wife who took Japanese citizenship during WWII because all their friends were Japanese, but still sent their sons back to the US; Halberstam writes of the president of Nissan's US branch (Datsun) who incredibly had enough strength of character to rename Datsun's new sportscar the Z80 (in North America) from the FairLady (in Japan) against the CEO's wishes; Ford's dismal accounting practices of the early 20th century when all invoices were put in a pile and weighed (!) to estimate how much cash was required in the checking account; and most rewarding of all, the story of Professor Deming, the American inventor of modern quality control, arrogantly overlooked in his homeland and treated as an oracle of wisdom in industrial Japan.
I also found the Reckoning useful, because for the fifteen years I've lived in Japan I've relied and built upon the insights it gave me. David Halberstam presents an accurate evaluation of how Japanese business often works, especially manufacturing businesses. Halberstam doesn't advocate following Japanese practices, he merely presents them and evaluates their success. Sometimes these practices can be applied, and sometimes they can't.
Japanese office practices work well in Japan because they rely on local customs. For example, the reason Deming found a voice in Japan is that a Tokyo University professor took notice of his work and called several old students who were now executives in Japan's car industry. They invited Deming and listened to his lectures. It's a characteristic of Japanese society that teachers retain some authority over their students for their entire lives, not only for the year they spend teaching them. This would not have worked in the West. However, once the value of Deming's work was obvious American car companies studied and implemented them, even if late.
The lesson is that while Deming's methods can work as well for U.S. car makers as for Japanese, the politics of getting them accepted depend entirely on local conditions. Japanese car men were open, and sincerely enthusiastic, of listening to their old professor's ideas, while American car men needed failure to humble them enough to change their ways.

I'll start off with the caveat that I believe David Halberstam is America's finest living writer. "The Reckoning" ranks in the middle-tier of Halberstam's body of work, only because it hasn't aged as well as a classic like "The Best and the Brightest."
Halberstam's 'big concept' here is as follows:
Beginning of car industry:
Ford (and U.S.) - Good!
Nissan (and Japan) - Flat on their backs or making scooters, lawnmowers, surviving WWII, etc.
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In the 50s and 60s:
Ford / US - Good! (but overconfident, cocky, arrogant)
Nissan (then Datsun) / Japan - Bad (making cars on equivalence with cheap transitor radios)
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By mid-80s (the book was published in 86):
Ford (as proxy for US economic model) - Bad! (Hubris brings great fall, etc.)
Nissan (as proxy for Japanese economic model) - Good! (Height of Japanese bubble economy and 'The Japan that Can Say No')
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By mid-90s (Book starts to look very dated):
Ford - Ascendant! (tenures of Red Poling, Alex Trotman put Ford back on top)
Nissan - Collapsed! (popping of Japanese bubble economy; Nissan loses touch with consumers, bleeds red ink)
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2002 (Book regains its relevancy):
Ford (as proxy for US) - Punch-drunk fighter stumbling around taking an eight-count after brain-dead Jacque Nasser era
Nissan (as proxy for Japan) - Firing on all cylinders worldwide thanks to amazing leadership of Carlos Ghosn
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It is worth noting that contrary to Halberstam's premise, Nissan is succeeding *despite* the Japanese model, not because of it. [Ghosn's real success has been his attack against long-held Japanese core principles such as guaranteed lifetime employment.]
What would be great would be a re-release of 'The Reckoning' with about a 75- to 100-page update by Halberstam bringing the events of the last 16 years into focus vis-a-vis the original premise of his 1986 publication.

It is about the rise and fall of the American Auto industry, with focus on the history of Ford and Nissan. Although it was published some thirty-three years ago, the consequences of its story are still very much with us today.
The story runs from the 1890’s to 1986 and relates the long sequence of ups and downs on both sides of the Pacific. Nissan and the other Japanese auto companies faced most of the same problems that the American companies did, and their success in the 1970’s was not at all inevitable. In particular, it details how the decision makers in both American and Japanese companies resisted changes until they were forced by circumstances to act. “The Reckoning” of the title refers not to the 2009 disaster, but to the shift of the American Auto manufactures in the late 1970’s and early 1980’s to moving production out ot the country, building cars with increasing numbers of parts from foreign sources and putting their labels on cars actually made by foreign companies. He describes this as being less and less an American Industry and more and more finance and marketing companies dealing in what were essentially foreign products. He ends with a warning that this not only wiped out American jobs, but left the companies permanently weakened in the face of their foreign competition.
It’s a big book bull of excellent accounts and portraits of the people involved. Highly recommended despite its advanced age.

The Reckoning is not just a book about the car buisiness, or even just business as a whole. Halberstam has written a sprawling book about the human narratives that underpin every business decision, every intercorporate political machination, every glitch in the economic movement of the world.
The book is as close to a novel as non-fiction can get. The characters are sharply drawn and grandly realized. Business decisions, board meetings, and car manufacturing descriptions are imbued with the crackling writing of good fiction. The style will make you want to read on.
As for the subject matter, it isn't just about Ford vs. Nissan, or Japan vs. the US; this book is about people, their failings, prejudices, arrogance, stupidity, short-sightedness, intellect, brilliance, drive, ethics, love, culture, and power.
It offers powerful insight into the world of multi-national corporations. If you want to know who's running the world right now and how, this book is a must read.

I found out more about the how and why of not only the auto industry, but also, the whys of the government policies that have developed in my lifetime. From corporate to wars, I came away with a more complete understanding of "policy". It was also very interesting to read about the real people involved in Hiroshima and how they coped. Before this book, I, like most Americans, believed that the "bomb" caused total devastation. They connections between Ford Motor Company and the rest of the world and the US is fascinating. I would highly recommend hunting down a copy of this book. I have shared it with several people. It is sort of slow reading, but it makes you WANT to keep going. They have all given it a high rating.
The first time I owned this book, I read it and passed it on. I found myself citing facts, figures and examples from it so often, I searched until I found a copy and immediately ordered it to keep in my library.
I have found Halberstam to be a very interesting writer. He has the ability to present hard facts while presenting a personal story through letters and other historic materials. Read him and you will not be disappointed.

The Reckoning is a wonderful book that shows how the United States lost its dominance in the automobile industry. In true Halberstam fashion MacNamara is one of the main villains but through stunning research Halberstam paints a very clear picture of what happened. Japans attention to detail and innovation overshadow America's downfall. The big three are unable to respond and those who are running the Japanese business in the United States who were far more inventive. This book is still relevant even in today's world.

This is more than the story and comparison of two companies (Ford and Nissan, respectively the second-largest auto companies in America and Japan) intertwined into a particular period of global history. It is also an insight into the cultures of the corporate mentality in both countries, and the personalities within provide some interesting parallels; from the overbearing Katsuji Kawamata and Lee Iacocca, to the overshadowed visionaries Yutaka Katayama and Don Frey (who, despite Iacocca's claims to that title, was probably the REAL father of the Ford Mustang).

The author's intent was probably to show how Ford prospered in the 1940s to the early 1970s, then fell as it became too large and slow to react to changing economic times, and how Nissan (and the other upstart Japanese companies) in that period rose at Ford's (and General Motor's and Chrysler's) expense. But as the book was ending, in the mid 80s, Ford was on a major upward swing with the then-new Taurus and Sable; for the first time in decades, it would overtake GM in passenger car sales. Meanwhile, Nissan was about to be overtaken as the second-largest Japanese company by Honda. Halberstam also covers the burgeoning threat of the Korean auto industry, whose infancy has since paralleled Japan's to a startling degree. Even if events have made some of this book obsolete (Ford has had several upward- and downward spirals since the mid-1980's, and has since been passed as the world's No. 2 automaker--by Toyota; Nissan flirted with bankrupcy, and has since been purchased by Renault), this is a very fascinating book.

An interesting time capsule from the 1980s automotive industry.
Best parts of book cover the beginning of the Nissan company and its start in the US.

I bought this book just to have a copy in my library. YES, I HAVE read it. But every time I had a copy of it, I gave it away because I wanted so much for someone else to read it, too!! If you haven't read it, you should. It explains the arrogance and stupidity of the American Auto Industry and how it GAVE everything away to the Japanese, figuring they were too stupid to figure it out. I'm sure that when Halbersam wrote it, way back when, he had NO idea the auto industry would be in the situation it is in now! Talk about foretelling! Read it and see for yourself.

I have read this book twice. Enjoyed it and learnt from it both times.

The book compares US and Japan, particularly the Auto industry, taking Ford and Nissan as two representative companies.

The book provides remakable insights into how the two reacted to the '70s oil crisis. Walking down the streets in US, and counting the 'Non US' cars, confirms how correct Mr. Halberstam was in assessing the 'reckoning'. The financial performance of GM and Ford futher confirm it. The book clearly shows how the finance and number oriented 'whiz kids' at Ford, led by Robert Mcnamara, destroyed the soul of car lovers whose passion was cars. It also shows how the Japanese overcame tremendous challenges to win the Auto war.

Along with rich insights, the book scores well on style. A racy narrative, story-like style, with entertaining anecdotes and description of lively characters, make this book very readable.

Mr. Halberstam identified Korea as the next reckoning. Today the next one - China, is getting ready. Current events makes this book very relevant in today's age.