The manufacturing productivity gap among North American automotive manufacturers continued to narrow as quality advances and more flexible labor agreements drove major improvements, according to The Harbour Report North America 2007. The larger gap in financial performances of the Detroit-based and Japan-based automakers reflect domestic companies' higher incentive costs, legacy costs, and their slower response to shifts in consumer choices more than any large competitive disadvantage on their factory floors. The UAW and CAW were more proactive in 2006 than ever before in creating a more competitive environment among the companies whose hourly workers they represent. The Big Three negotiated more flexible local labor agreements prior to this summer's national talks with the UAW, but they still have persistent health care and pension-cost disadvantages vs. Honda, Nissan, and Toyota. Restrictive labor agreements that create cost disadvantages still exist, and could jeopardize the survival of certain automakers.
展开▼
