Updated 8/11: Looks like the plant has a tentative agreement.
Last post before vacation… still sounds like there could be a labor stoppage at NUMMI. I found this interesting:
“While GM and Toyota own the plant equally, most of its capacity is used by Toyota. In this year’s first half, 84 percent of the 205,563 vehicles the California plant produced were Toyota models.”
I remember, at one point, at the Toyota Corolla, while being practically identical to the GM Geo/Chevy Metro, sold at a nice ($500?) price premium over the GM product. People said this was due to Toyota’s quality reputation and reliability. GM was being punished by the market for poor quality.
That’s a great illustration of the Profit = Market Price – Cost principle. Although the “Cost” for the GM and Toyota NUMMI products were the same, I’d guess, Toyota’s profit was higher because the market placed a higher value on the Corolla over the Metro.
Thanks for reading! I’d love to hear your thoughts. Please scroll down to post a comment. Click here to receive posts via email.
Now Available – The updated, expanded, and revised 3rd Edition of Mark Graban’s Shingo Research Award-Winning Book Lean Hospitals: Improving Quality, Patient Safety, and Employee Engagement. You can buy the book today, including signed copies from the author.