Microecon Paper - Erin Hamilton August 4th, 2005 With...

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Erin Hamilton August 4 th , 2005 With intense price wars and a rise in foreign competitions many North American automakers profits have been dwindling since 2001. This has influenced them to rethink basic assumptions on the best and most profitable way to manufacture automobiles. Chrysler plans to soon roll out a completely new manufacturing process (known as flexible manufacturing), following in the footsteps of its foreign competitors such as Toyota Motor Corp. and Honda Motor Co. The new process will hopefully decrease the costs of developing and producing cars by billions over several years. With the new process, which will begin in the fall, Chrysler will take one of its biggest money losing plants in Belvidere, Ill., and completely refurbish it. The change will allow the company to produce a minimum of three different modeled automobiles at the same plant, where as before they could only produce a maximum of two different models simultaneously. By retooling the plant the hope is that it will begin to produce
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This note was uploaded on 04/08/2008 for the course ECON 304K taught by Professor Ledyard during the Summer '08 term at University of Texas at Austin.

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Microecon Paper - Erin Hamilton August 4th, 2005 With...

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