Toyota Leads in Manufacturing Productivity Report

Washington DC June 1, 2007; The AIADA newsletter reported that Toyota was the top-ranked automaker in the 2007 Harbour Report on manufacturing in North America, with a combined 29.93 labor hours per vehicle. That score covers stamping, engine production, transmission production, and vehicle assembly.

Honda showed the biggest improvement this year of 2.7 percent in the combined assembly, stamping, and powertrain operations.

According to Automotive News, the gap in productivity among the six major North American automakers continued to narrow as quality advances and more-flexible labor agreements drove improvements.

However, big gaps remained in profitability. Toyota and Honda each earned an average pre-tax margin of more than $1,200 on vehicles sold in North America.

In contrast, Chrysler lost $1,072 per vehicle, while GM lost $1,436, and Ford lost $5,234 per vehicle in 2006.

The losses reflect a variety of factors, including the large difference in health care and pension costs, as well as rebates and low-interest-rate financing.