Remix.run Logo
derektank 10 hours ago

Even if there were no improvements to be had in the vehicle itself, improvements in manufacturing processes determine how expensive the product is and thus how competitively priced the vehicle can be. Falling behind on price means falling behind on market share which means falling behind on efficiencies of scale which often means going out of business or at best becoming a niche producer.

Honda and Toyota weren't able to outcompete US manufacturers in the 1980s by offering higher performance vehicles but by delivering similar quality products at lower prices by making use of superior production techniques like Lean and JIT inventory management.