American automakers inefficient compared to Japanese automakers
Clark Howard talked about the difference between U.S. automakers and Japanese automakers on his show yesterday.
Highlighting the inefficiency of American automakers
Honda is the envy of the manufacturing world for the flexibility and efficiency of their plants.Here’s a question for you: How long does it take the Japanese automaker to go from making, say, an SUV to a different model of car — on the same line in the same assembly plant? A stunning 5 minutes, according to a Wall Street Journal report. And how much does it cost? Absolutely nothing, thanks to the use of modular robots that can be quickly adapted.By comparison, it takes Ford a whopping 13 months and a staggering $75 million to make a similar change at one plant. That’s what Detroit is up against. We taxpayers are going to be asked to keep the Big 3 Motown automakers in business in the coming months. But in the free market, people always choose to buy from the most efficient producers.Until the Big 3 can get creative solutions like Honda, it won’t matter how much money we throw at them.
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Tags: big 3, chrysler, Clark Howard, daimler, detroit, ford, general motors, gm, honda, toyota, wall street journal
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November 19th, 2008 at 10:47 pm
I am recently retired from GM and my wife is retired from Honda. There is a world of difference between retooling an assembly plant and doing a model changeover on a flexible assembly line. It is comparable to saying American communities take 13 months to build a new school while Japanese students can go from one class to another in five minutes. It is not just an inaccurate comparison, it reflects either deliberate misinformation or stunning ignorance.
American automakers employ flexible manufacturing and robotics on a large scale. As in computers, this years state of the art is next years obsolete system. Whether you are American or Japanese, you have to rip out and replace complete assembly lines with updated systems on a regular basis or fail to be competitive. The reality is that American car companies would be profitable if they didn’t have a huge health care cost disadvantage. Yes, Detroit has other problems—but listening to clark howard won’t solve any of them
November 19th, 2008 at 11:22 pm
Yeah, let’s blame it all on health care. This wouldn’t be the unions’ fault, would it? They require American auto makers to negotiate with them before making any major changes in mfg., including bringing out new models.
I’m tired of all the excuses Detroit comes up with for failure. How about making a reliable car that people want? I’ve driven American cars and they’re garbage compared to what the Japanese produce. And what’s funny is the Japanese cars I buy are made in the USA. So we can do it here, it’s just that the big 3 can’t.
Let them fail.
November 19th, 2008 at 11:30 pm
We always fall back on blaming Unions for everything. Lets ignore the 70 year old grumpy men that run the companies who supposedly know what the young people want in a new car. Forget the bonuses they didn’t earn, forget the lack of long term vision, forget the volume over quality idealogy.
Nope, its health care and Unions!
November 20th, 2008 at 1:55 am
I can’t believe people are blaming unions for Detroit not being able to sell cars.
They were seling like crazy until the Wall Street financial fraud became obvious and external lenders realized no one had any money and they will no longer lend for car loans.
Want to get out of this recession?
Do what Henry Ford did.
Pay your worker MORE MONEY so they have money to spend to buy your products.
And by the way idiot Detroit bashers.
Mercedes and Toyotas are piling up on the docks in Los Angeles and Long Beach ports - idiots. NOTHING IS SELLING.
Its the financial crisis that has stopped car sales and that had ABSOLUTELY NOTHING TO DO WITH UNIONS..
November 21st, 2008 at 10:12 am
Actually I think you a re all right, it is a combination of all the things mentioned that are causing the crisis. Japanese auto manufacturers do produce a better and more efficient vehicle. The unions do hurt the economy and the businesses they work for. And, if Kevin understood economics or business he would understand that the article above is 100% correct. The ability to switch production from one type of vehicle to another is crucial, and the cost and time used to do it are even more crucial. And above all, the current economic situation has a lot to do with piled up cars.
December 7th, 2008 at 10:08 pm
There’s a lot of myth and misinformation about American car companies. See:
http://voices.kansascity.com/node/3008
December 11th, 2008 at 1:44 pm
Listen in Canada no body likes American cars; people here only buy American cars as the last alternative. You can go to any parking lot and see for yourself. The majority of carsin the parking lot are Japanese.
So why would somebody wants to keep producing a product that is no longer neede or wanted?
Let them go and stop giving them hand outs.