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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

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To: porcupine --''''> who wrote (446)6/29/1998 4:56:00 PM
From: porcupine --''''>  Read Replies (1) of 1722
 
> >Today, a GM-made car that costs the same number of hours of work on
> >the part of the average U.S. worker can often operate for 100,000
> >miles before its first trip to the shop. In addition to > >reliability...

> Except oil and oil filter changes, timing belts, etc.

Point noted.

> >As should be obvious, there is a "little boy or girl" in every auto
> >worker, from the factory floor to the executive suite, who wants to
> >make "cool cars". GM, for instance, is the company that put
> >hi-powered V-8 engines in every Cadillac, created America's only
> >high-speed sports car (the Corvette), perfected the automatic
> >transmission (Rolls Royce once bought its transmissions from
> >Oldsmobile), produced the 409 V-8 engine, the Pontiac GTO, and so > >on.

> Where's something to compete with the Miata? (which I bought a few
> months ago.)

There isn't. The issue is why. My point being: Though every auto maker wants to make innovative cars, GM couldn't afford to design innovative cars in the early 1990's, and remains severely hampered by a cost structure that no other car maker operating in the U.S. is constrained by.

> Also, you're completely leaving out the successful Saturn.

The Saturn is not widely viewed as a design or engineering innovation. Rather, it is seen as a marketing innovation: haggle-free car buying.

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