xcel
10-19-2006, 06:11 AM
Report puts a number on Asian advantage over big U.S. automakers. (http://www.msnbc.msn.com/id/15106109)
Roland Jones - MSNBC - Oct 17, 2006
http://www.cleanmpg.com/photos/data/501/2007_Pontiac_Solstice.jpg
The Pontiac Solstice and the Hummer SUV both use the same climate control system.
It’s no secret that like companies like Nissan and Toyota are outrunning their American rivals, but now a new study has put a number on the advantage Asian automakers have over Detroit’s Big Three.
U.S. automakers make an average of $2,400 less per vehicle than their Japanese counterparts because of less-efficient purchasing and manufacturing procedures, according to a study by the Harbour-Felax Group, an industry consulting firm based in suburban Detroit.
The study’s findings paint a bleak picture of the challenges the big American automakers face when competing with their Asian rivals. GM and Ford, the two largest, are busy working through massive job reductions and plant closures to restore their businesses to financial health and remain competitive, but Harbour-Felax Group President Laurie Felax does not think they are moving quickly enough.
“GM and Ford are doing a tremendous amount of work, but they don’t have 25 more years to execute [their restructuring plans],” Felax said. “So I think the study’s findings show they are moving in the right direction, but they need to move faster,” she added.
U.S. automakers are certainly struggling to keep up with their Asian rivals, according to the study, which looked at over 20 competitive business areas where Detroit’s Big Three - General Motors, Ford and Chrysler - are falling behind Japan’s Big Three - Toyota, Nissan and Honda. Revenue and pricing, product design, and manufacturing and labor issues were identified as having the most impact on profit per vehicle.
Kevin Reale, research director for AMR Research, an industry consulting company, says GM is the best positioned of all the three U.S.-based carmakers to take advantage of component sharing. The Pontiac Solstice and the Hummer SUV, for example, both use the same climate control system, while the Saturn Sky and the Chevy Cobalt use the same door handle.
“So what’s interesting from the GM perspective is they are taking things that are visible to the customer and reusing them,” Reale said. “Right now, all of the Big Three need to do a better job of this. Chrysler is also moving down this path and Ford has the biggest opportunity to accelerate this process. They have been doing a good job with the Ford brand, but now they need to extend this to other brands, like Volvo and Jaguar.”
Labor issues are another handicap for the Big Three, said Felax. The “Jobs Bank,” where unionized workers who have been laid off by the Big Three are paid while not working, lax work rules and large healthcare benefits add to the profitability gap. Toyota, for example, has far fewer retirees than the U.S. automakers and doesn’t have the burden of paying for healthcare for retirees, while the Big Three pay the healthcare costs of thousands of retirees.
Kevin Reale, research director for AMR Research, an industry consulting company, says GM is the best positioned of all the three U.S.-based carmakers to take advantage of component sharing. The Pontiac Solstice and the Hummer SUV, for example, both use the same climate control system, while the Saturn Sky and the Chevy Cobalt use the same door handle.
“So what’s interesting from the GM perspective is they are taking things that are visible to the customer and reusing them,” Reale said. “Right now, all of the Big Three need to do a better job of this. Chrysler is also moving down this path and Ford has the biggest opportunity to accelerate this process. They have been doing a good job with the Ford brand, but now they need to extend this to other brands, like Volvo and Jaguar.”
Labor issues are another handicap for the Big Three, said Felax. The “Jobs Bank,” where unionized workers who have been laid off by the Big Three are paid while not working, lax work rules and large healthcare benefits add to the profitability gap. Toyota, for example, has far fewer retirees than the U.S. automakers and doesn’t have the burden of paying for healthcare for retirees, while the Big Three pay the healthcare costs of thousands of retirees.
Roland Jones - MSNBC - Oct 17, 2006
http://www.cleanmpg.com/photos/data/501/2007_Pontiac_Solstice.jpg
The Pontiac Solstice and the Hummer SUV both use the same climate control system.
It’s no secret that like companies like Nissan and Toyota are outrunning their American rivals, but now a new study has put a number on the advantage Asian automakers have over Detroit’s Big Three.
U.S. automakers make an average of $2,400 less per vehicle than their Japanese counterparts because of less-efficient purchasing and manufacturing procedures, according to a study by the Harbour-Felax Group, an industry consulting firm based in suburban Detroit.
The study’s findings paint a bleak picture of the challenges the big American automakers face when competing with their Asian rivals. GM and Ford, the two largest, are busy working through massive job reductions and plant closures to restore their businesses to financial health and remain competitive, but Harbour-Felax Group President Laurie Felax does not think they are moving quickly enough.
“GM and Ford are doing a tremendous amount of work, but they don’t have 25 more years to execute [their restructuring plans],” Felax said. “So I think the study’s findings show they are moving in the right direction, but they need to move faster,” she added.
U.S. automakers are certainly struggling to keep up with their Asian rivals, according to the study, which looked at over 20 competitive business areas where Detroit’s Big Three - General Motors, Ford and Chrysler - are falling behind Japan’s Big Three - Toyota, Nissan and Honda. Revenue and pricing, product design, and manufacturing and labor issues were identified as having the most impact on profit per vehicle.
Kevin Reale, research director for AMR Research, an industry consulting company, says GM is the best positioned of all the three U.S.-based carmakers to take advantage of component sharing. The Pontiac Solstice and the Hummer SUV, for example, both use the same climate control system, while the Saturn Sky and the Chevy Cobalt use the same door handle.
“So what’s interesting from the GM perspective is they are taking things that are visible to the customer and reusing them,” Reale said. “Right now, all of the Big Three need to do a better job of this. Chrysler is also moving down this path and Ford has the biggest opportunity to accelerate this process. They have been doing a good job with the Ford brand, but now they need to extend this to other brands, like Volvo and Jaguar.”
Labor issues are another handicap for the Big Three, said Felax. The “Jobs Bank,” where unionized workers who have been laid off by the Big Three are paid while not working, lax work rules and large healthcare benefits add to the profitability gap. Toyota, for example, has far fewer retirees than the U.S. automakers and doesn’t have the burden of paying for healthcare for retirees, while the Big Three pay the healthcare costs of thousands of retirees.
Kevin Reale, research director for AMR Research, an industry consulting company, says GM is the best positioned of all the three U.S.-based carmakers to take advantage of component sharing. The Pontiac Solstice and the Hummer SUV, for example, both use the same climate control system, while the Saturn Sky and the Chevy Cobalt use the same door handle.
“So what’s interesting from the GM perspective is they are taking things that are visible to the customer and reusing them,” Reale said. “Right now, all of the Big Three need to do a better job of this. Chrysler is also moving down this path and Ford has the biggest opportunity to accelerate this process. They have been doing a good job with the Ford brand, but now they need to extend this to other brands, like Volvo and Jaguar.”
Labor issues are another handicap for the Big Three, said Felax. The “Jobs Bank,” where unionized workers who have been laid off by the Big Three are paid while not working, lax work rules and large healthcare benefits add to the profitability gap. Toyota, for example, has far fewer retirees than the U.S. automakers and doesn’t have the burden of paying for healthcare for retirees, while the Big Three pay the healthcare costs of thousands of retirees.