Supply Chain

Big Three Can't Blame Japanese For Their Problems Any More

June 7, 2008

New data from consulting firm Oliver Wyman's Harbour Report reveals that thanks to all the layoffs, restructurings and renegotiated union contracts over the past couple years, the Detroit Big Three automakers have basically leveled the playing field with the Japanese. In terms of plant productivity, Chrysler and Toyota are neck-and-neck when it comes to plant productivity. After that, it's Honda in the number three position, then General Motors, then Nissan, then Ford -- with all of them pretty closely bunched.

As reported in the Wall Street Journal, "A level-playing field in plant productivity means union labor is now no longer a major disadvantage for GM, Ford and Chrysler, and shifts the focus of their troubles on management. In the past, the Big Three have blamed many of their problems on the high wages and benefits the United Auto Workers commanded. Now the bulk of their profitability issues stem for management decisions."

Of course, that's the WSJ spin, not necessarily the spin the Big Three themselves will use (it'd be refreshing and unprecedented, though of course it'll never happen, if an auto exec came out and said, "Our employees have done tremendously well in responding to the call for cutbacks, and their productivity makes me proud to be working here. Any problems that happen from now on are entirely my fault, period."

This article from the Detroit News offers another take on the report.

About the Author

Dave Blanchard Blog | Senior Editor

Focus: Supply Chain

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Contributing Editor Dave Blanchard provides the IndustryWeek audience his expertise in lean supply chain, reporting on topics from logistics, procurement and inventory management to warehousing and distribution. He also specializes in business finance news and analysis, writing on such topics as corporate finance and tax, cost management, governance, risk and compliance, and budgeting and reporting.

Dave is also the chief editor of Penton Media’s Business Finance and editorial director of Material Handling & Logistics.

With over 25 years of experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2010), and is a frequent speaker at industry events. Dave is an award-winning journalist and has been twice named one of the nation’s top columnists by the American Society of Business Publications Editors.

Dave received his B.A. in English from Northern Illinois University, and was a high school teacher prior to his joining the publishing industry. He is married and has two daughters.