Showing posts with label outsourcing. Show all posts
Showing posts with label outsourcing. Show all posts

Monday, October 17, 2011

Outsourcing in the Auto Industry

Many if not all major Auto manufacturers outsource or have outsourced during their company history (1). For those familiar with the industry, it can be difficult to to imagine the industry without outsourcing.


A recent trend for both US companies and US divisions of companies based overseas is to open domestic factories (2, 3, 4). In some cases this is done to cut costs. This recent trend of "insourcing" is also used as a selling point for automakers that are opening new US plants (5, 6).


Volkswagen, specifically, made news in 2008 when it announced plans to open a new, state-of-the-art US facility in Chattanooga, Tennessee (7). It opened the plant in May of this year (8) and has been able to cut labor costs (2). It has also designed a vehicle specifically for the US market that is being manufactured specifically at the Chattanooga plant (9).


Sources:
1. http://it.toolbox.com/blogs/sourceoff-blog/big-three-automakers-outsourcing-to-mexico-39465
2. http://online.wsj.com/article/SB10001424052748704083904576335501132396440.html
3. http://www.kmmgusa.com/
4. http://www.reuters.com/article/2010/03/07/us-toyota-idUSTRE6260DA20100307
5. http://www.youtube.com/watch?v=j264EVvD4gI
6. http://www.youtube.com/watch?v=clwZqni4a9U
7. http://www.autoblog.com/2008/07/15/volkswagen-announces-plans-for-factory-in-chattanooga-tenn/
8. http://www.timesfreepress.com/news/2011/may/24/live-grand-opening-chattanoogas-volkswagen-plant/
9. http://www.autoblog.com/2011/01/09/2012-volkswagen-passat-chattanooga-vw/
image: http://greennews4u.com/wp-content/uploads/2011/05/VW-Plant-Chattanooga.jpg

Share

Twitter Delicious Facebook Digg Stumbleupon Favorites More