Nandagopal J. Nair writes:
The biggest drag is is a strong Australian dollar, which is making local manufacturing uncompetitive compared to imports. Over the past 12 months the currency has traded about 30% above its three-decade average. Its strength has pushed up manufacturing costs, making Australia the third most expensive country to do business in, according to the IMF.
Read more at GM and Toyota may follow Ford’s lead and shut plants in Australia – Quartz.
Christina Rogers reports how more flexible union agreements have allowed automakers to wring additional production out of existing plants.
Nearly 40% of car factories in North America now operate on work schedules that push production well past 80 hours a week, compared with 11% in 2008, said Ron Harbour, a senior partner with the Oliver Wyman Inc. management consulting firm.
“There has never been a time in the U.S. industry that we’ve had this high a level of capacity utilization,” he said.
Read more at Auto Makers Run Factories Full-Bore to Avoid New Investments – WSJ.com.
