February 12, 2007

Toyota Memogate?

Frank Williams:
These issues pale in comparison to one problem that could make or break Toyota’s North American operations: their relationship with their hourly workers. In a confidential memo that accidentally ended up in workers’ hands, Seiichi Sudo, president of Engineering and Manufacturing in North America, discussed the cost of American labor and the steps they need to take to control those costs.

The memo, which was inadvertently stored on a shared computer drive, states the US auto industry pays some of the highest manufacturing wages in the world. It compares American wages to those in France and Japan (50 percent higher) and Mexico (500 percent higher). They project their American labor costs will increase by $900m over the next four years.
Ed Wallace on the upcoming truck wars. Posted by James Zellmer at February 12, 2007 10:03 PM | Subscribe to this site via RSS:
Posted to Advertising | Business | Careers | Cars