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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: I_C_Deadpeople who wrote (45922)	11/21/2005 4:06:57 PM
From: Elroy Jetson	Read Replies (2) of 110194

Toyota vs. GM comparison. -- Why do GM and Ford design cars which need 25% more labor to assemble, than do Toyotas and Hondas? Why does GM and Ford design cars with inferior durability and performance? The answer is inferior management -- out of touch with consumer demand and changes in technology. Yet the inferior management at GM and Ford is paid roughly three times as much as management at Toyota or Honda. Triple pay for self-destructive management! a.) Toyota has prospered by designing superior automobiles, with ease and exactness of manufacture being one of the most important design criteria. b.) GM uses 45.6 labor hours to manufacture each vehicle, while Honda and Nissan plants in North America use 30.76 hours and Toyota uses only 30.38 hours. c.) When compared to Toyota and Honda -- the extra labor required by their inferior vehicle designs cost GM an extra $989 and Ford an extra $503. d.) Yet how many Toyota or Honda owners would purchase a Ford instead for a $503 discount or a GM for a $989 discount. Probably none. e.) Worse still, inferior design creates autos that few wish to purchase at any cost. *Will it be possible to replace the incompetent management at American auto makers before these companies fail?* I don't know of a way to do this. Yet, this outlines the magnitude and source of the real problem. .

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