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

Posted by RodInNS on February 15, 2007 at 20:31:30 from (142.177.87.162):

In Reply to: Re: GM to buy Chrysler???????? posted by davejoe on February 15, 2007 at 16:41:18:

Actually, most of the "American" brands have partnerships and partial ownerships of most of the Jap brands, and components are sourced from around the globe for all of them. The point of assembly is based more on closeness to final market than anything else. Toyota is actually doing a lot of their assembly work in Canada, in a non-union plant I think. They're still all well paid jobs, good benefits, and all that. The difference is in the product that they're building. It's well built, engineered, etc, and it lasts a long time, and doesn't cost any more, or little more than a lot of the junk that Ford/GM/Chrysler are selling against it. Detroit management has sat way back and rested easy for way too long. They've relied on customer loyalty to keep buying their products, rather than building good products. That's not really a reflection of the people on the floor doing the work. It's a management problem in that they didn't find and solve the problems that exist. Now they're paying for it, and they'll continue to pay for it if they don't go bankrupt first.
Take a car like a VW Jetta that we have here. For the most part they get whatever price they want for the cars because they sell themselves. They don't have the value in them that they once did, but they're not bad.... but they're in demand. Detroit needs to create demand again. I would also agree with another remark that labor has actually become a rather small component of manufacturing costs in general. Automation has taken care of that....

Rod

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