Chrysler closes efficiency gap with Toyota

AUBURN HILLS, Mich., June 6 (UPI) -- Efficiency gaps closed, but profit gaps continued to separate U.S. automakers and their Asian rival Toyota, a report said.

Chrysler LLC came in tied with Toyota in efficiency, taking 30.37 labor hours to make one vehicle, the 2008 Harbour Report North America said Thursday.

Toyota's efficiency declined by 1.5 percent on the year, while Chrysler, showing the biggest improvement among U.S. automakers, gained 7.7 percent, the Detroit News reported.

Ron Harbour, a partner in the report with Oliver Wyman's North American, said Chrysler "roared to the point where they are neck and neck with Toyota."

Asian and American companies showed gaps in profit margins, however.

In 2007, Toyota's profits dropped from $1,266 to $922 per vehicle, while Ford Motor Co. lost $1,467 per vehicle, General Motors Corp. lost $729 and Chrysler lost $412.

Discrepancies in labor costs and revenue per vehicle accounted for the difference, the report said.