Toyota versus GM: Health Care, Hybrids and Kaizen

Now that Democrats have assumed control of Congress, many in GM are hoping for help dealing with health care as part of the solution to their problems. While I agree that GM might need some help dealing with health care, I think GM should also take the President's advice - build more relevant vehicles.

Still, even Japanese automakers are dealing with health care issues when they open up factories in the U.S.. For example, Toyota's health care costs for U.S. employees has doubled in the last five years to more than $11,000 per employee. Unlike GM; however, Toyota is taking action rather than just complaining to the government.

To help deal with health care, Toyota is building a $9 million dollar clinic to serve the employees of one of their factories. Why? Kaizen, or continuous improvement.

"Typically we reduce costs by improving quality," said Ford Brewer, assistant general manager for health and wellness at Toyota's North American manufacturing headquarters. "That's the same thing we're doing here." (more)

Just as with hybrid vehicles, Toyota is always seeking continuous improvement. Hybrids are not only fuel efficient and incredibly clean, but they help develop new technologies. Hybrids don't require one huge jump when the time is right - such as from gasoline vehicles to full fuel cell vehicles - they enable continuous improvement. First a hybrid, then a plug-in hybrid, then a small stack fuel cell plug-in hybrid, then a full fuel cell vehicle - continuous, constant improvement.

It will be very interesting to see if Toyota is able to reduce its health care costs with this approach. Still, Toyota is taking action, rather than just begging for help. Toyota is again thinking outside-of-the-box.

Perhaps if GM sought to solve more of its problems with innovative thinking, rather than always looking to the government, GM's bottomline would be a little more robust.