Date: Mon, 15 Oct 2001 14:58:47 GMT
Subject: Re: Toyauto vs Slaab : bottom line

If you don't understand what that has to do with the unit cost of building a FWD V a RWD vehicle, then you need to review your economics courses. Having a union may effect costs but the fact the Ford has a union in immaterial since the both their FWD and RWD assembly plants are union plants. You will find that even though Toyota pays their employees less, offers fewer benefits, provides lower pensions and has a higher accident rate, which indicates faster line speeds, Toyotas sell for appreciable more than the comparable vehicles of their domestic competitors! Ray O wrote: > > <> wrote in message > > > Thanks for your input. You certainly are entitled to your > opinion but > > you opinion is based on assumptions and your assumptions > are not based > > on fact. RWD engines and trannys are off line assembles, > as well, but > > the rear end and drive shaft are not. On line assembly in > timed in > > MINUTES. Off line is timed in tenths of HOURS. The > economies of scale > > are reflected in the wide range use of shared parts as > well as the total > > assembly TIME not the total numbed assembled. Ideally > total on line > > assembly is best from a cost standpoint, but not from a > quality stand > > point. If you want to improve quality of on line assemble > you must slow > > the line. The union contract has an effect on line speed. > If you want > > to see an example of that, watch the guys installing the > head liner then > > watch the guy installing wheels. > > > > Mike > =========================== > I agree with everything you wrote above but what does that > have to do with cost? Also, Toyota plants in the US are > non-union When the Kentucky plant opened, I read that > Toyota's pay scale and benefits were better than union scale > and benefits so when the UAW representatives came, they > couldn't get enough votes. > > This is OT, but when I first started working in Toyota's San > Francisco regional office, the parts distribution center > workers were union. The workers voted to decertify because > the pay raises were better from Toyota than on the union > scale, Toyota's health benefits didn't cost anything to > employees but they had to pay the union for benefits, the > union didn't offer the employee vehicle purchase and lease > plans and parts purchase plans that you could as a non-union > employee. > > Ray O

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