Date: Tue, 16 Oct 2001 15:23:39 GMT
Subject: Re: Toyauto vs Slaab : bottom line

The 'that' is you can't seem to grasp the differences between off line and on line assemble costs. Ray O wrote: > > <> wrote in message > > > 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. > ==================== > Mike, > I might have an easier time trying to understand what you're > saying if you tell me what you mean by *that* when you say > "that has to do with the unit cost of a FWD vs. a RWD..." > > Here's my point - if the engine/trans assemblies are mad > off-line for both FWD & RWD, then theoretically the > production cost for both is the same. Both have axles and > diffs but the FWD vehicle doesn't have the cost of a > driveshaft. To use one of your favored vehicles as an > example, if a Crown Victoria were made in FWD and RWD > versions with evrything else in the car being the same, the > FWD without the driveshaft would be minus a part and cost > less although it would probably sticker for the same amount. > Of course, the manufacturers will want to sell the higher > profit margin FWD vehicle so they will tout the advantages > of FWD just like they tout the advantages of a lot of > cost-saving designs like MacPherson struts or in-glass > antennas. > > 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! > ============================ > I think you misread my post. From what I read in the past, > Toyota pays their employees more than union wages with > better benefits and pensions. I can't speak for the > accident rate since I have not seen any data. I have not > been in a Ford plant but the line speeds in the 3 Toyota > plant I have seen did not stirke me as fast, if anything, I > thought it was slow for how quickly the cars are produced. > > The reason that Toyotas sell for more than comparable > vehicles of their domestic cocmpetitors is the reason you > stated prviously - market conditions. People will pay more > for a Toyota than for a comparable domestic car. > > Ray O

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