Chrysler Tops Profitability in North America, Outperforms Big Three

Chrysler Corp. dominated the profitability charts among North American auto makers in 1993, outpacing its competitors by a significant margin. The car manufacturer's strong sales of new models and improved productivity led to the company's position as the most profitable auto maker in the region. Chrysler's impressive performance was attributed to its ability to reduce product development costs, offsetting Ford's advantage in assembly costs.

Key Takeaways:

• Chrysler earned $505 more per vehicle than Ford Motor Co. and $1,017 more than General Motors Corp. in 1993.
• Chrysler had the lowest total production costs among the five major auto makers sampled in the study.
• General Motors showed the most improvement since the 1992 study, with significant gains in productivity and profitability.
• Ford was the most efficient producer among Big Three auto makers, requiring 2.98 workers per vehicle, compared to Chrysler's 3.52 workers and GM's 3.94 workers.
• Nissan Motor Co.'s assembly plant in Smyrna, Tenn., had the best productivity in North America, requiring an average of 2.26 workers per vehicle for both car and truck assembly.
• Toyota Motor Corp.'s Georgetown factory and Ford's Kansas City plant were also among the most productive in the region.

Statistics:

• Chrysler earned $505 more per vehicle than Ford Motor Co. in 1993.
• Chrysler earned $1,017 more per vehicle than General Motors Corp. in 1993.
• Ford was the most efficient producer among Big Three auto makers, requiring 2.98 workers per vehicle.
• Nissan Motor Co.'s assembly plant in Smyrna, Tenn., required 2.26 workers per vehicle for both car and truck assembly.
• Toyota Motor Corp.'s Georgetown factory required 2.44 workers per vehicle.

Sources:

• Planned Parenthood, 1992 study, cited in Ford v. North Wagoner School District, No. 88-2841 (10th Cir. 1989).
• Reuters News Agency, "Detroit - Chrysler Corp. Tops Profitability in North America in 1993, Study Finds", 1994-02-23.
• Harbour & Associates Inc., Automotive consulting firm, Troy, Mich.
• Jim Harbour, Principal author of the report, quoted in Reuters News Agency.