That is how they operate in Japan. Much of the actual manufacturing goes to suppliers in Japan who do not operate the same way the named manufacturers do. They did that is a really big way before the US companies did. There are lots of Japanese auto workers not covered by the policies the big Japanese companies use for their own employees. Like here in the US, the workers at the component suppliers are second class and lower paid compared to the workers at the manufacturers own plants.

I agree that the Japanese companies tend to be a lot less penny wise and pound foolish with regard to their policies. I think that stems from them having a different time horizon. Managers and investors here look at quarterly and yearly returns and compensate executives according to very short term measurements. Japanese executives apparently are judged on a much longer term basis.

I get much of my information from a retired auto executive who was an instructor of mine in grad school and with whom I’ve kept in touch. He was the head of Rochester Carburetors (GM) for some time and has been a critic of American automotive management techniques for years. He studied the Japanese automakers back in the 70’s and 80’s by going there for a year or two and reported his findings to the big three. I haven’t spoken to him for a year or so but he was still watching the international auto industry closely despite being retired.


We all like to think of ourselves as rugged individualists. But when push comes to shove most of us are sheep who do what we are told. Worst of all, a lot of us become unpaid agents of whoever is controlling the agenda by enforcing the current dogma on the few rugged individualists who actually exist.