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Re: Toyota may help out GM and Ford Posted by Randy Thatcher [Email]  (#22)  [Profile/Gallery]
(more from Randy Thatcher) on Fri, 10 Jun 2005 08:38:08
In Reply to: Re: Toyota may help out GM and Ford, Dan  [Profile/Gallery]
, Fri, 10 Jun 2005 07:50:56
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Yep, as GM was moving production to Canada and Mexico, I have personally spent the last 10 years involved in launching BMW plant 2 in Spartanville, 2 Toyota Indiana plants, Toyota Kentucky retoolings, many Toyota/GM Joint venture retoolings in California, and the Mercedes Plant 2 in Alabama. My team is also doing Honda Ohio and Alabama, and Hyundai in Alabama. I've also done Toyota Mexico, China and Canada. Bottom line, Toyota is growing fast with no signs of letting up, and other automakers are striving to do more "local" production.
GM needs to figure out how to build a product people want. Toyotas are really kindof appliances, but that's what the public wants. How can GM get their reputation for quality up? And not just initial quality. People talk about driving Toyotas and Hondas for 10+ years and 150k+ miles with minimal problems. GM has to meet or exceed this while making a stylish car people want to buy. That's a HUGE uphill battle that will require YEARS of engineering and design, and they can't slack off once things turn around.
Maybe the majority of the car buying public ISN'T out for the most horsepower. Seems reliability and fuel economy are the big goals in the next few years. Toyota has reliability, plus with the hybrids and the nearly 40mpg Corolla they have the gas thing going, too.
Also, japanese cars are basically offered in 3 trim levels, not unlike SAAB. US mfrs have all kinds of options and price adders. Maybe that's confusing or a turn-off to the buying public. Perhaps the the Big 3 buying experience at the dealer is a major pain. I'm told the Lexus buying experience is great. I wonder if Toyota and Honda make it easy and less painful to buy a car. Dealerships may be a huge factor, too. Not just product. Think about SAAB's sticker price vs. actual price thing. How many potential buyers do we lose just due to that? I know most Big 3 dealers are probably family owned affairs with a lot of history, ego, and resistance to change. But slimy/high-pressure sales tactics are a turn-off.
One BIG difference with Toyota is simple: every car built on that assembly line is SOLD. That's right, a manifest won't get printed if it's not sold. Granted, most are ordered by the dealer, but each car has a specific destination. Currently every Toyota plant in North America is running 1-2 production Saturdays per month, too. Toyota's are not just built to sit on some huge lot waiting for the next big summer blow-out sale. Fincially it makes sense to implement a "just in time" parts flow INTO the plant. I guess it works the same on product flow outbound, too. Toyota isn't sitting on tons of inventory they don't know what to do with. GM's books have to look horrible with months of extra production sitting on lots all over the country.
my rambling .02,
Randy
, Fri, 10 Jun 2005 10:34:03
, Fri, 10 Jun 2005 13:38:26, Fri, 10 Jun 2005 14:39:01, Fri, 10 Jun 2005 17:00:58, Fri, 10 Jun 2005 14:37:11, Fri, 10 Jun 2005 10:44:03, Fri, 10 Jun 2005 11:34:42
, Fri, 10 Jun 2005 10:27:58, Fri, 10 Jun 2005 07:50:56, Fri, 10 Jun 2005 08:38:08 <-- Viewing This Message, Sat, 11 Jun 2005 00:23:54, Sat, 11 Jun 2005 03:43:54, Sat, 11 Jun 2005 13:07:02
, Fri, 10 Jun 2005 07:19:17
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