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In response to
":-) -- nm"
by
Beryllium
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Good luck. Having a plant doesn't gaurantee profitability.
Posted by
TWuG
Nov 12 '08, 13:32
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The Big Three have several issues:
-Legacy costs associated with union contracts.
-Inability to react quickly to a changing market.
-Reliance on one or two lines to prop up an overall line-up that performs poorly.
Legacy costs must be addressed or it'll be just like the Social Security problem. All current profits going to support former employees, except no ability to borrow money or print more money to address it.
The short-sightedness of companies is ridiculous. They continue to push out autos with poor fuel efficiency knowing full well that gasoline will continue to be priced high.
If a company does well selling trucks, but poorly selling sub-compacts, perhaps dumping the poor lines, and becoming a niche player would be a better idea? Instead of having 7 or 8 name plates, go with 2 or 3? Instead of 12 or 14 models, perhaps go with 5 or 6?
Insttead of having ala carte optioning, join the Japanese and offer only two or 3 option packages and only offer ala carte on paint and interior finishes.
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