President Barack Obama Message Board

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Politics : President Barack Obama

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To: ChinuSFO who wrote (44658)	11/15/2008 4:02:44 PM
From: manalagi	Read Replies (1) of 149317

Have you ever met someone who rather drives 20 miles to save a dollar? That's what GM does. It will go to the lowest bidder to get inferior parts, and the result is that they have to spend millions of dollars to honor the warranty. In addition their parts departments have mumbo jumbo parts which have the same functions, like brakes, locking systems, oil filters, bulbs, etc. etc. These parts are from diverse suppliers, and practically every year, they change the parts that have been tested and functioning well. The Japanese car makers limit the number of changes once a component works well and tested. Witness how many years the engine of small truck 22E are in used. This engine is so well proven to be reliable and durable that they are discontinued because the newer trucks are getting bigger and require stronger engines. We have the best brain in managing business. We have most Noble prize winners in economics - macro and micro -, but the CEO's are just tossing the idea of economics of scale, and practice penny wise pound foolish.

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