Save the Detroit 3!

International Journal of Productivity and Performance Management

ISSN: 1741-0401

Article publication date: 25 April 2008

Citation

(2008), "Save the Detroit 3!", International Journal of Productivity and Performance Management, Vol. 57 No. 4. https://doi.org/10.1108/ijppm.2008.07957dab.006

Publisher

:

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited


Save the Detroit 3!

Article Type: News From: International Journal of Productivity and Performance Management, Volume 57, Issue 4.

Toyota is the most productive car manufacturer operating in North America, according to the latest in a long-running series of studies on factory efficiency by Harbour Consulting. But the lead is slim and the Detroit Three (Ford, GM and Chrysler) are quickly closing the gap.

Certainly the trend is promising. In the past several years, the Detroit Three have closed the productivity gap with the Japanese from about $1,500 per vehicle to $200 to $300, says the Harbour study.

In the case of Toyota, a typical, North American-made vehicle required 29.93 man-hours per vehicle, while at the other end of the scale, Ford plants needed 35.10 hours of labour.

The most efficient Detroit maker, GM, required 32.36 hours of labour, or barely two hours more than Toyota. Chrysler was close, too, taking just under 33 hours to build a car.