Friday, 3 August 2007

Big Boys Play Tough

The Korean Automobile Industry has developed tremendously over the last 10 years and is now globally competitive . BUT from recent reports ... it appears to be losing its competitive edge ... and this is how it made its mark and its progress. Wages are rising but productivity is falling ... and quality is not yet at the levels of Japanese - and even the better European - production.

Customers will accept (slightly) inferior quality for a lower price ... but if you can't compete on price, you have to compete on quality ... and on other issues such as design, reliability, etc.

So to the Korean Automotive Industry we say ... "Welcome to the real world. As one of the big boys you now have to grow up and sustain your competitiveness through improved productivity AND quality".

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