Quality Issues Force Automakers to Rethink Low-Wage Countries

Low-cost labor may not be all it’s cracked up to be.

That message, delivered repeatedly these days at industry confabs and seminars, doesn’t signal manufacturing’s exodus from developed countries is over. But it does mean the movement could be a little more tempered and a lot more strategic than what was foreseen a decade ago.

Hourly wages of $2.50 in Mexico and 88 cents in China will continue to be a draw for many.

More after the jump:



Full 2006 LA Auto Show photos (click the link below)

2006 LA Auto Show Photo Gallery

AutoSpies.com Photo Galleries


Read Article

99gs400 - 12/14/2006 3:06:33 PM

+1 Boost

U GET WHAT U PAY FOR !!!

snatch - 12/14/2006 3:17:39 PM

+1 Boost

true to a certain extent...

but explain land rover [UK] and mercedes ML [US]...

kart1 - 12/14/2006 4:47:47 PM

+1 Boost

Is Toyota having these problems???

sracekili - 12/14/2006 9:36:23 PM

+1 Boost

I agree. I thought initially it was about something in the line of poor quality parts leads to poor quality assembly and poor reliability equals to loss of sales and consumer confidence. sort of like Mexican made VWs seems to be having more reliability issues than the ones that are imported from Germany.

S4cabriofoxone - 12/14/2006 11:07:08 PM

+2 Boost

Uhh, RICEMASTER, plenty of Asian brands, such as TOYOTA, have manufacturing plants in the US. They've been pretty successful with reliability.

Wait, no. That's just Toyota's image talking. They've had plenty of recalls lately!

99gs400 - 12/15/2006 11:46:26 AM

+1 Boost

"plenty of Asian brands, such as TOYOTA, have manufacturing plants in the US. They've been pretty successful with reliability"

thats call PROPER TRAINING from Toyota, i worked for Toyota for 8 yrs.