Tag Archives: automobiles

Understanding the reasons for GM’s shift of work from Mexico to Canada

An article in the New York Times (September 20, 2016) ┬átitled “G.M. Job Shift From Mexico Tests a Trump Premise”, describes a decision by General Motors to shift work from an automobile engine plant in Mexico to Canada and shutting … Continue reading

Posted in Capacity, competitiveness, consumer, Global Contexts, Made in USA, manufacturer, Operations Management | Tagged , , , | Leave a comment

VW variety and associated costs

An article in the Financial Times (November 20, 2015) titled “Volkswagen (VW) choked by cost and complexity”, claims the company has 117 different steering wheels for the Volkswagen Golf. Plans are afoot to decrease that to 43, with efficiency programs … Continue reading

Posted in manufacturer, Supply Chain Issues, Uncategorized, Variety, vehicles | Tagged , , , , | Leave a comment

Auto supply shortages in the US and impact

An article in the Wall Street Journal (September 3,2013) describes supply constraints faced by US auto dealers for cars made by Nissan, Ford, Toyota and Honda. Dealers report having significantly lower inventories, one car instead of the normal 15 in … Continue reading

Posted in Operations Management, Service Operations, Supply Chain Issues | Tagged , , , , , , | 1 Comment

Japanese multinationals importing back into Japan

An article in Bloombergbusinessweek (September 17,2012) describes automobiles made in Thailand by Nissan but ported back for sales in Japan. At 1 million yen, it is 65% of the price of a Japanese made car and 34 % of the … Continue reading

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Corn trade restrictions, price increases and the impact on the urban poor

An article in the Economist (September 15, 2012) describes impact of the recent drought in the US, coupled with ethanol blending requirements for fuel on a spike in corn prices. Similar choices by other drought stricken countries and price sticker … Continue reading

Posted in Global Contexts, Supply Chain Issues, Sustainability | Tagged , , , , , , | 1 Comment

The high cost impact of choices made for the GM Volt hybrid vehicle

An article by Reuters (September 10, 2012, http://www.reuters.com/article/2012/09/10/us-generalmotors-autos-volt-idUSBRE88904J20120910) describes General Motors as losing $ 49,000 on each Volt it builds. The costs are due to developmnt and tooling costs, number of unique parts in the battery pack and motor as … Continue reading

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Volkswagen (VW) and its Modular Transverse Matrix strategy for part commonality

An article in Fortune (July 23, 2012) describes VW’s plan to standardize the 60 % of a car model’s cost – the front axle, heating, air conditioning etc across 40 car models and thus seven million units. The projected savings … Continue reading

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