Structural change in the auto industry
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  1. #1
    1000+ Posts gerry freed's Avatar
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    Default Structural change in the auto industry

    Daihatsu dismantling 'Toyota Way' as market changes - The Economic Times

    Although not strictly related to "French" cars, this thoughtful article gives some insights into the manufacturing cost differences of the car makers. It also makes reference to the increasing use of Chinese components in the world's cars.

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  2. #2
    Veni Vidi Posti 68 404's Avatar
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    Fascinating article.

    I get the feeling of deja vu though. Didn't Renault do the same thing to Nissan when they took them over (ie deconstructuring established supply chains)?

    Dave
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  3. #3
    dvr
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    Love the analogy to sandals and dress shoes.

    Makes sense when you see how much cottage industry has developed around keeping their motor scooters on the roads, in countries like Vietnam. Why do cars need to last long, be loaded with non-essential features and survive hostile environments like the desert, as this new business practice suggests?

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    Now i'm worried. Shouda have gone with the Corolla instead of the Megane.
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  5. #5
    Too many posts! JohnW's Avatar
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    Very interesting Gerry. Thanks for that. Toyota will struggle culturally with this, the opposite of Nissan's non-Japanese flexibility. They would do well to note how Nissan profitability changed with Carlos Ghosn in charge.

    I'd expect it to be possible to get consistent quality out of China with the right approaches too, as many manufacturers have found.
    JohnW

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