A Comparison of US,West European,UK and Japanese Performance 1977–80

Many reasons have been advanced for the apparent lack of competitiveness of several West European car manufacturers when comparing them with those of Japan. The underlying facts are more basic than robots replacing men, union versus management conflicts, low productivity, lack of investment in new plant and reluctance to adopt new processes. Many manufacturers in Western Europe are wasteful in the use of energy at several critical stages of car production, starting with energy use in the manufacture of the primary materials, ferrous and non-ferrous, plastics and tyres, proper utilization of process heat, insulation of buildings, dispersal of facilities, leading to extra transhipment costs and holding of contingency stocks for work in progress. Up to one-third extra energy is needlessly spent in many plants built or refurbished in the past two decades—much of it being lost to the atmosphere. Over half the production cost of a modern European motor car is accounted for by materials and around 30 per cent by manufacture. With Japanese cars requiring 20–30 per cent less energy during manufacture than their European counterparts, many of the old established manufacturers of cars and major components have a difficult future ahead, for the cost of energy is likely to rise year by year. A radical re-assessment of energy utilization during all phases of production is urgently called for.