Thursday, December 17, 2009

Competitive Advantage: American Manufacturing At Its Best!

The new merger or acquisition of Chrysler by Fiat is starting to pay dividends. Fiat could have chosen to build its new engine-that sources say will eclipse 39miles per gallon-anywhere in the USA or outside of the country-in Brazil where 50% of the products will be sold.

But according to stipulations by the Barack H. Obama's Administration, the U.S. Government has spurred Fiat to increase its stake, because although it has an equitable position in the company by Wall Street standards of over 10% that entail notifying the SEC-it can increase its equity to 35% by building cars in the U.S.

But get this, Fiat wants to increase its equity in the company while concomitantly increasing its profits-a no brainer you might say. Well, in the current labor milieu in the U.S. profitability is not easily achieved. So, Fiat scanned the environment and found an example that offers a global advantage in lil' ole Monroe County, Michigan.

At the Dundee Engine plant there will be 155 new hires. All of which must be Knowledge Workers (KWs). The day of brawn model is gone, the brain model is not only on the horizon it is the vanishing point of the old: as far as the eye can see, this type of plant and personnel will foment and foster knowledge wokers! Those workers who can scan the environment and bring back to the operations' managers ideas, knowledge, information, data that will sustain its advantage! Eitehr from the classroom or from publications and conversations.

As Jack Welch was found of saying: If you don't have a competitive advantage-don't compete! It looks like Chrysler if it can grow this model to replace the old model at all facilities in the next few years-the world will witness the Renaissance of American Manufacturing and its antecedent Global Advantage!

In the future, when they start to hire for the plant jobs again and they will, you will need at least a two year degree. If you only have a H.S. Diploma or a GED or even two years of college and no credential you need not apply. It seems Chrysler CEO Sergio Marchionne is adding value to productivity which compounds into quality, high job satisfaction, and high wages.

According to the article "Chrysler currently employs 257 people at the Dundee plant, which operates under a flexible labor agreement that requires all hourly workers to have a journeyman's skilled trades certificate or at least a two-year degree in a technical field." (http://www.freep.com/article/20091217/BUSINESS01/91217025/1319/Chrysler-to-expand-Dundee-engine-production-add-jobs)

1 comment:

  1. I agree with Jack Welch. If you do not have a competitive advantage, you indeed do not compete. I hope to see a renaissance in the Auto Industry in the next 10 years. I hope to see Detroit rise as the "Renaissance City" it is supposed to be.

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