Productivity Gap Widens Between Big Three US Automakers and Japanese Counterparts

A recent study by The Harbour Report found that the Big Three Japanese automakers, Toyota, Nissan, and Honda, have continued to outpace their American counterparts in terms of productivity and profitability. The report, an influential gauge of productivity and profitability, revealed that Toyota was the quickest in building vehicles, averaging 27.9 hours per vehicle, while Ford was the slowest, averaging 37 hours per vehicle. The study also found that Japanese automakers have improved their profitability, with Nissan making an average of $1,603 per vehicle in the first three months of 2005, compared to General Motors' loss of $2,331 per vehicle.

Key Takeaways:

• Toyota was the most productive manufacturer, averaging 27.9 hours per vehicle, while Ford was the slowest, averaging 37 hours per vehicle.
• Nissan made the most money per vehicle, earning an average of $1,603, while General Motors lost $2,331 on each vehicle.
• The Big Three Japanese automakers, Toyota, Nissan, and Honda, have continued to improve their productivity and profitability in North America.
• Toyota's productivity gains are expected to continue, with the company targeting further improvements every day.
• General Motors and Ford are facing a challenging year, with the former abandoning its earnings guidance and the latter expecting break-even results for its automotive division.

Statistics:

• Toyota's average time per vehicle: 27.9 hours
• Ford's average time per vehicle: 37 hours
• Nissan's average profit per vehicle: $1,603
• General Motors' average loss per vehicle: $2,331
• Toyota's productivity improvement: 5.5% over 2003
• Ford's productivity improvement: 4.2% over 2003
• General Motors' productivity improvement: 2.5% over 2003

Sources:

• The Harbour Report
• Bloomberg News
• Suzi Altman
• Toyota spokesman Dan Sieger
• General Motors vice president Guy D. Briggs
• DaimlerChrysler
• Ronald Harbour, president of Harbour Consulting