Japanese earn $2,400 more per car
Group says US firms pay higher labor costs
The biggest Japanese automakers earned an average $2,400 more per vehicle sold in North America than U S -based rivals in 2005 by charging more and spending less on labor and health care, according to a study released yesterday.
Toyota Motor Corp., Nissan Motor Co., and Honda Motor Co. persuaded buyers to pay an average $24,289 per vehicle, 12 percent more than U S automakers, the Harbour-Felax Group study said. The Japanese paid $1,400 less per vehicle on health care, and their workers spent more time on the job.
The study highlights topics that will be raised as General Motors Corp., Ford Motor Co., and Chrysler prepare to negotiate a four-year contract with the United Auto Workers. Ford and GM are working to revive profit after first-half losses, and Chrysler expects a $1.5 billion deficit in the third quarter.
``It's time for the Detroit Three and the UAW to get together and resolve these problems," Jim Harbour, the study's co author, said in a statement.
Further contributing to U S automakers' problems is their loss of market share in the United States. Through August of this year, GM's sales have fallen 12 percent, Ford's are down 9.9 percent, and Chrysler's are down 9.7 percent. Consumers are buying smaller, more fuel-efficient vehicles from Toyota and Honda, and avoiding the large trucks and sport-utility vehicles that the U S automakers rely on for profit.
Quality problems add to the U S automakers' competitive disadvantage, Royal Oak, Mich. -based Harbour-Felax Group said. Toyota spends $348 per vehicle on warranty costs, compared with more than $500 each at Detroit-based GM, Dearborn, Mich. -based Ford, and DaimlerChrysler AG's Chrysler unit.
Union contracts at GM, Ford, and Chrysler expire in September 2007 .
