Future Trends in the Automotive Industry

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1. Analyzing the automotive industry, examine future trends and compensation models or plans and discuss how these will affect the industry.

1. The industry is moving more towards modular manufacturing, this will lead to greater use of contingent workers.
2. The automotive industry is marred with overcapacity, complicated production practices and inflexible production lines.
3. There have been costly union strikes, top-heavy management, negotiations and contracts with workers.
4. The automobile companies are also facing financial problems.
5. They will find it difficult to match the compensation available to workers in other industries.
6. The employee productivity has increased by 2.4 percent and it is expected that productivity will increase in future based on improved technological inputs, however, this will not lead to a faster growth in compensation package in the industry.
A reward system that challenges employees to take responsibility of their work is missing in the automotive industry.

This material is taken from the website; http://www.industryweek.com" Let's face it, the union-management model that has dominated the U.S. auto industry must change completely if these companies are going to survive. There's a reason why Toyota has located most of its North American plants in non-union states and why its employees are productive and satisfied.
Toyota has said one of the reasons it is expanding in the United States is the valuable workforce. And, obviously, the company has a formula that engages that workforce and makes it an integral part of ...