I’m not sure that narrative on “forgetting how to build quality cars” is fair. Germany and Japan introduced a lot of new technologies and processes that would naturally be a little rocky from time to time. It is the nature of immature services.
Once those matured, the new stuff quickly caught up. But it needed time.
What makes you think it was the increase in executive or shareholder comp that caused the degradation in quality? Do we even know if there was a degradation between a 1960 ford and 1985, or is it because the Japanese and German automakers raised our standards?
This is a situation where a lot of narratives fit the evidence.
Once those matured, the new stuff quickly caught up. But it needed time.
What makes you think it was the increase in executive or shareholder comp that caused the degradation in quality? Do we even know if there was a degradation between a 1960 ford and 1985, or is it because the Japanese and German automakers raised our standards?
This is a situation where a lot of narratives fit the evidence.