As Toyotaslips into the #1 position, I have to wonder what the heck the U.S. Automakers are doing. They created the perfect organization over 20-years ago, but have failed to use it effectively and to its full potential. The Automotive Industry Action Group

The AIAG was to standardized compontents (standard fastener sizes and bolt patterns, hinges, supports, electrical harnesses, etc.) to drive the cost of these components down, as well as establishing super suppliers that would mass produce them at a considerable cost savings. It never materialized like it should because of quality standards differences and head design engineers wanting to put their thumb print on everything (ego problems).

Besides,standardization of components would also reduce the need of a lot of support personnel. Toyota employs rough 290,000 people where GM employs more that alone, while ford is reducing their staff to rough 60,000 people by the end of 2008. Ford will actually have a fighting chance, but GM & Chrysler are two different stories.

Side note: Chrysler has the lowest quality standards in the automotive industry, in thatthey allow bigger tolerances and lower CPKs (higher failure rates) to qualify for production.And that needs to beclarified -- Chrysler will accept 1 failure in 1,000,000, where GM is 1 failure in 1,500,000. and total run out of.001" vs .0005" type of thing. In Stamping products Chrysler is more real and their costs are lower because of it.

 

I think they can compete...the just need to figure out what to do, the foreign car makers took what we were doin and improved it...while we stayed satisfied, its time we c how they have improved, and take that and make it better