Costs and Productivity in Automobile Production: The by Melvyn A. Fuss

By Melvyn A. Fuss

Motorized vehicles are favourite one of the flows of exports and/or imports for Canada, Germany, Japan, and the U.S., and those exchange flows are seriously inspired through the elemental relative competitiveness of the creation approaches for automobile production. during this ebook the authors research the standards that contributed to the comparative rate competitiviness of the 4 nations' vehicle industries over the interval 1961-1984 and disentangle the criteria contributing to the japanese expense and potency benefits. The authors supply estimates of comparative expenditures of motor vehicle creation (both short-run and long-run) and the resources of those price transformations, in keeping with the econometric price functionality technique. An innovation is the cautious therapy of potential usage, some of the most very important assets of short-run price and potency modifications. this system can be used successfully in an research of the Canada-U.S. car Pact, a distinct scan in exchange liberalization. past estimates of fee and potency ameliorations utilizing the plant inspection and comparability of corporation monetary studies methodologies also are evaluated.

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Extra info for Costs and Productivity in Automobile Production: The Challenge of Japanese Efficiency

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S. 26 summarizes a major automotive industry study (Abernathy, Harbour, and Henn 1981) of the amount and source of unit cost differences between the United States and Japan. Abernathy et al. S. producers. This advantage was due mainly to labor cost differences, since the authors concluded that the Japanese auto producers had a disadvantage for other inputs. Using a plant-by-plant comparison, Abernathy et al. S. industry required some 144 hours to produce a similar vehicle. 5% increase in the United States.

Automotive industry was in severe difficulty, facing a Japanese comparative advantage. For 1974 Toder et al. S. S. 26 summarizes a major automotive industry study (Abernathy, Harbour, and Henn 1981) of the amount and source of unit cost differences between the United States and Japan. Abernathy et al. S. producers. This advantage was due mainly to labor cost differences, since the authors concluded that the Japanese auto producers had a disadvantage for other inputs. Using a plant-by-plant comparison, Abernathy et al.

In 1977, hourly labor costs in Germany significantly exceeded those in Canada for the first time. By 1981, German labor costs were 38% above those in Canada. Over the period 1961 to 1984, hourly labor costs (in Canadian dollars) rose 571% in the United States, 505% in Canada, 1,725% in Germany (to 1981), and 2,813% in Japan! 17 provides information on total labor costs as a percentage of total output (value of shipments) for the motor vehicle industry. 2% in Japan. 6% in Japan. 15. S. a. a. a. 1984, LCO as a percentage of shipments fell to 20% in the United States, remained at 12% in Japan, and rose to 14% in Canada.

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