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by Beth Stackpole, Contributing Editor   | Abstract: | North American automotive manufacturers are rallying around product lifecycle management and design reuse to catch up with global competition. |
Tired of paying through the nose for gasoline, automotive consumers have shifted their purchasing preference to fuel-efficient vehicles, and that has cast a spotlight on an ongoing challenge for North American automotive manufacturers: How to inject agility and flexibility into product development cycles. While the three major Detroit-based auto makers — General Motors Corp., Ford Motor Co., and Chrysler Group — have made substantial strides over the last decade in improving their quality and manufacturing performance, they're still far off the pace of their Japanese rivals when it comes to consistent profitability. Ford reported its largest quarterly loss in 14 years in its fiscal 2006 third quarter ($5.8 billion), reflecting an 8.6% decline in U.S. auto sales this year. In comparison, companies like Toyota Motor Corp. and Honda Motor Co. are enjoying steady profits, thanks in part to their ability to push out cross-over vehicles, subcompact cars, and hybrids to a U.S. market increasingly disenchanted with gas-guzzling trucks and SUVs. Toyota recently reported a 34% rise in third-quarter sales on strong North American demand for its fuel-efficient vehicles. Thinking Like Toyota [Click to continue] |