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To cut costs, auto manufacturers have expanded outsourcing of certain parts of production and introduced less labor-intensive production methods.

a. True
b. False

User Mutttenxd
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1 Answer

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Final answer:

The statement is true as historically, auto manufacturers have increased outsourcing and adopted less labor-intensive methods, including just-in-time production, to cut costs and increase efficiency.

Step-by-step explanation:

The statement that auto manufacturers have expanded outsourcing of certain parts of production and introduced less labor-intensive production methods is true. This strategy, often referred to as just-in-time production, has been utilized to minimize costs and increase efficiency.

Historical trends in the automotive industry have shown a shift from traditional in-house unionized labor to a reliance on outsourcing and offshoring.

By doing so, manufacturers have been able to significantly reduce warehousing jobs and put pressure on suppliers to decrease costs and increase quality, leading to a prevalence of parts factories in low-cost, non-union regions. This has had wide-reaching effects on job availability in developed countries, and is also evident in other sectors beyond manufacturing, such as customer service and technical support.

User Siddhesh Dighe
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