And, a recent tour of one of the Asian powerhouse’s vehicle plants has proved this beyond a shadow of a doubt, at least to Honda President and CEO Toshihiro Mibe.
“We have no chance against this,” Mibe said upon a visit to a Shanghai parts factory, commenting on its seamless automation across all levels of production. Logistics, procurement and all aspects of the process were so automated, in fact, that he did not spot a single human worker on the supplier’s floor.
Ford executives saying even three years ago that China was way ahead of the game
Toyota’s CEO has likewise said regarding not just his company, but the industry in general, “unless things change, we will not survive”
I have had this same thought and I feel like I’ve come to a realization. If companies can cater to the desires of the top 10% or so, they can make more money. Why sell 200 $5 objects when I can cater to the affluent and sell 6 $250 objects.
I see this constantly with Automobiles and construction. Auto manufacturers do not make the cheap baseline cars for the most part Because they’ve realized they can make more money manufacturing the fancier /vehicles trim levels with higher margins.
Same thing with new buildings; affordable housing is not what is being built. You only see fancier, expensive construction, with higher margins, being constructed.