| In Europe many automobile companies such as | | | | do what they do in Europe just as efficiently, but |
| Audi, Ford, and Volkswagen allow the customer to | | | | we don't. This adds more complications later on, |
| buy their car to order. In other words, they can | | | | although the car dealerships say that the Dealer |
| pick the type of grill they want, the type of | | | | Trade System works quite well. The issue really is |
| interior they want, the color they want, and all | | | | that customers and consumers want everything |
| the accessories. The automobile manufacturing | | | | right now in the United States and they are not |
| company puts together the car in such a way | | | | willing to wait 3 1/2 months for their customized |
| where the customized items go on last, and as | | | | car. |
| soon as the car is mostly completed those final | | | | However, those same customize cars in Europe |
| components are put on just the way the | | | | do not take 3 1/2 months, because most all the |
| customer wants them. | | | | cars are customized, so each car only takes a |
| In the United States this isn't done, except for | | | | week or two longer for the customized order. |
| very few special orders. If you go to a car | | | | Some environmentalists say that customizing at |
| dealership and want a certain type of car, which is | | | | the factory saves road trips, providing less over |
| a certain color with certain accessories and it is | | | | the road transportation for dealer trades. This |
| not at that particular car dealership then as you | | | | may or may not be true because every car |
| know the car dealership will do a "Dealer Trade" | | | | hauler truck generally has 10 vehicles on it and |
| with another car dealer somewhere in the | | | | when they do dealer trades from let's say Texas |
| country with the exact car that you want. That | | | | to California the truck will have 10 cars on it from |
| car will then be shipped to the dealer where you | | | | Texas and drop them off at four or five different |
| are buying the car, and the two dealers make a | | | | dealerships in California, then take cars from |
| deal with each other, and perhaps, swap for | | | | California back, so they are already sharing those |
| something that the other dealer wishes to have. | | | | loads. |
| Because so many people want certain types of | | | | These are all things that we should consider, when |
| cars in America just like their European | | | | trying to make sense out of which is the most |
| counterpart customers, you can understand that | | | | efficient way to make cars, and keep all the |
| all these dealer trades are causing quite a bit of | | | | customers happy and buying more of them. I |
| Distributor and Dealer trans-shipping, it also means | | | | imagine in the future that more cars in the United |
| there is more cost, and usually these costs are | | | | States will be customized, and that it will be the |
| shared between the dealership selling the car and | | | | Japanese auto companies that will end up doing it. |
| the customer buying the car. Still, it sounds like a | | | | Since Ford is already doing this for the factories in |
| lot of hassle doesn't it to get the exact car you | | | | Europe, you could expect them to work very |
| want to the dealer nearest you. | | | | hard to compete. |
| Now then, which is better creating the customized | | | | Also with the Indian, and Chinese auto |
| car at the auto manufacturing assembly line itself, | | | | manufacturing companies for the low-end cars |
| or doing dealer trades to get the particular car | | | | that will be hitting our markets between 2010 and |
| you want? The European auto manufacturers | | | | 2012, this could give the advantage to |
| have this down to a science, and it doesn't seem | | | | domestically made cars. And you can expect the |
| to cost that much more to customize the car on | | | | Japanese auto manufacturers to follow suit with |
| the way out. The auto manufacturers in the | | | | any preemptive factory customizing strategies |
| United States claim that they can build an SUV | | | | put forth by any of what is left of the Big Three |
| for instance in 18 hours, which is about the | | | | in the US markets. The reality is it is more |
| fastest in the world because they do not do | | | | efficient to customize the car at the factory, but |
| customization and they let the customer who | | | | it also means that we have to redesign our |
| wants a special order do a Dealer Trade or they | | | | factories slightly to make all this happen. |
| make them wait 3 1/2 months to get that special | | | | Indeed, I hope you've enjoyed this dialogue on |
| car if they do it the auto manufacture. | | | | distributor and dealer Trans-Shipping Versus |
| It would seem that with the incredible ability we | | | | Custom Order European Auto Making Strategies. |
| have in manufacturing, all the six Sigma and finite | | | | Please consider all this. |
| capacity scheduling modeling that we'd be able to | | | | |