Recent reports by the Center for Automotive Research will challenge your thinking whether you side with labor, management, US auto makers, or foreign automakers.
You don’t have to be a Ford engineer or a line worker at GM to feel the pain in Michigan from the Big Three’s meltdown and attempt at transformation.
Recent insights from the Center for Automotive research may be all most everyday citizens need to know about the auto industry in 30 minutes or less…
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And auto industry strategies are still driven by antiquated management knowledge and an unwillingness to honestly reflect on what works and what does not work.
An inbred dislike of the word “process” and insistence that the person that does the actual work cannot contribute to improvement are just two debilitating mindset characteristics of senior automotive managements.
Internal cost accounting performance tracking methods date back to the thirties and forties; mass production (run until it breaks) is still the rule in manufacturing; and distribution driven by the point at which title (and the cost of inventory) transfers at the manufacturing plant exit all contribute to the inability let all employees identify with their work and contribute to the improvement of same.
Automotive managements are still in denial- “grow baby grow” is not a reasonable improvement strategy.
Is the auto industry willing to do what it takes to survive? It does not appear that way. John Bebow is correct. It is not the expense side so much as the sales side. They need to sell more vehicles. Unfortunately many Americans especially those on the west and east coast still believe the Big 3 or should we say Small 3 make an inferior product.
Here is a common sense thought. Do away with model years. This concept costs automakers millions. Instead Model numbers, a new number comes out when there is something worth changing or inventories get to a preset number. ie the Impala XI …think about it…it makes sense!!
I expected many more comments from Michigan residents. Or is this not a matter for discussion?
If Michigan isn’t interested in its survival, then why should Congress and the rest of the nation?
Wake up, Michigan! The world is watching.
This is not a comment, but a question. I have heard that if retiree healthcare is removed from current UAW workers hourly pay, their wages are comparable to non-UAW workers. I have also heard that if the bonuses that non-UAW auto workers receive are included in their hourly rate, they are comparable to UAW wages. Does anybody know the facts?
The one metric above which shocked me and that I had not heard before: Sales per franchise. By my calcluations, Toyota franchises averages between 4x and 7x the sales of GM franchises.
This is staggering! When one things about the time and financial support the Big 3 provide to their networks, this is a significant cost disadvantage. Does anyone know why this is so?