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Business Plan - USA - Toyota controls quality, cost by making many parts in house
Bucking the trend
USA - AutoWeek, by LINDSAY CHAPPELL -21 Oct 2005: -- Making cars and car parts in the same factory is supposed to be an outdated business plan... So why is Toyota Motor Corp. - an industry leader in efficiency and innovation for many years - hanging on to in-house parts making at its North American assembly plants?... General Motors, Ford Motor Co. and the Chrysler group have been struggling for years to make assembly plants more efficient by unloading parts manufacturing to outside suppliers... Toyota's North American factories, which range in age from 10 to 20 years, also perform the sort of large-scale in-house parts making that more modern auto factories no longer do... But Toyota's factories are the most efficient in North America - parts and all - and Toyota isn't so sure it wants to change... Toyota is simply following a different model, says Dave Cole, chairman of the Center for Automotive Research in Ann Arbor. "There isn't one magical business formula in the auto industry. Vertical integration works for Toyota. It doesn't work so well for the others" Cole says...
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