The cost of a man-hour is creeping up at Toyota. And in Detroit, new contracts will allow the Big Three to realize labor cost reductions over the next few years. BusinessWeek cites sources at Toyota who are worried about what the cost parity will mean. Will Toyota lose its edge?
But Toyota's manufacturing success has always been about a lot more than cheap labor costs. And the struggles of the Big Three go deeper than just the union/retiree issue. To suggest otherwise is a bit too reductionist. So this issue alone won't be Toyota's death knell.
I'm eagerly await the take of the manufacturing bloggers out there.
I almost agree with you. On the other hand I love this car. The interior of this car is fantastic one. What I think it is bit costly one but is giving good average as compared to other.
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Cost of man-hour is a critical factor, but others should be considered such as technology, reliability, design, etc when speaking of a car.
Posted by: April from Bakersfield | January 03, 2011 at 04:35 PM
It seems Toyota wasn't doing paticularly well last year, partially due to the higher cost, partially due to the safety recall.
Posted by: Eric from Los Angeles | February 23, 2011 at 08:34 PM
Autos stocks are as high as they have been in many years thanks to international markets. Hopefully they can all do well for a while.
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Toyota is facing far bigger problems right now since their plants in Japan are closed due to the earthquake and tsunami. They have actually halted production for a few days; they are losing millions of dollars a day.
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