The purpose of this study was to make a direct comparison between the application of two different approaches to manufacturing management in the domestic automobile industry in the United States. This objective was pursued by comparing managerial practices and outcomes at Chrysler Corporation with those at Honda USA.
Two research questions were investigated. The first question asked: Are their major differences between the American and Japanese approaches to manufacturing management as these approaches are applied in the domestic automobile manufacturing industry in the United States? The research found that the major difference was the applications of the principles of Japanese management at Honda USA and an absence of such application at Chrysler Corporation. The second question asked: Has the Japanese approach to management achieved superior operating outcomes to the American approach to management in the domestic automobile manufacturing industry in the United States? This question proved to be more difficult to answer, as each company appeared to have attained the goals sought. In the case of Honda USA, the goals were long-term financial gains and increased market share, while the primary goal at Chrysler corporation was short-term profitability. Without question the Japanese management approach contributed to the success of Honda USA; however, that approach to management would not have been as much benefit in the pursuit of short-term profitability. Thus, to answer this question, one would be required to place comparative values on the competing corporate objectives.
A subjective conclusion drawn by this researcher is that the Honda USA objectives are superior to those objectives pursued by Chrysler Corporation. Based on this subjective conclusion, a further conclusion is that adoption of Japanese management principles would be beneficial for American corporations. In an objective sense, however, such a conclusi...