American Cars Vs. Foreign Cars
I just heard an interesting fact about car manufacturers from the Chuck Bowen Podcast. My last post used car manufacturers as an example of good business models and bad business models. When a car manufacturer sees a change on the horizon they will make changes in the kinds of cars they make. Making more of some and less of others. When Honda needs to change the kind of car they make on a line it takes 5 minutes and no money. If any of you have ever been around manufacturing you will think this speed is amazing especially when it does not cost anything. Now considering Ford, at this point in time it is the most stable of the American car manufacturers, it takes Ford 13 months and $75 million dollars to change the model of car they are manufacturing on a line. This tells me that Honda is more agile and able to make quick business decisions to stay on top of the industry.