Re: GM to buy Chrysler????????

Posted by Doug in IL on February 15, 2007 at 16:20:35 from (67.142.130.19):

In Reply to: GM to buy Chrysler???????? posted by e on February 15, 2007 at 10:24:50:

I think it may be they know that the way to crush the "upstarts", like Toyota, in the American market, is to follow the example of Cat and Deere. Just get so big and powerful that they can just "take" the market. Everybody needs a car. If 90% of the cars left are GM's, then 90% of the buyers will have to be GM customers. It may or may not work. But, it sure worked for Cat and Deere. There is no competetion at all for Cat and very little for Deere. They have just became so dominant in their respective markets. Maybe GM's going to become the next "Big Dog". By the way, labor costs are not the issue these companies want the public to believe. Labor costs in a D11 Cat used to amount to less than 10% of the wholesale cost of the product. All labor costs, not just union labor costs. Or so I read. It's probably less now. I imagine a car would fall in the same range. 90% of the costs have nothing to do with that old, nasty, dreaded UAW.

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