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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (25905)	3/18/2005 4:48:35 PM
From: TH	Read Replies (1) \| Respond to of 116555

ild, "How many do you think will be out of job?" A great question and one that is very important to my good friend at C&A. I think it is safe to say that if C&A goes bust and closes the doors, that at least half will be out of work. I only guess half at this point because many of the divisions within C&A were at one time stand-alone operations. At one of the C&A tool shops about three quarters of the employees have survived three changes in ownership in 10 or 11 years. Only the name on the building changes, but the payroll checks keep rolling. I would expect many of operations will quickly be sold and will continue with normal operations. 100% of the people doing advanced design will be out of work, as will many that are working on future programs more than 1-2 years out. Much of the business currently on the books at C&A will be moved to the big oaks (JCI, Lear, Visteon, Delpi, Manga), and the oaks will cherry pick the top people at C&A from each group. Average joes and grunts are going to have to scramble to find an equal position in the industry. Today I had lunch with a recently "fired" C&A employee. He has some very impressive letters after his name, and a number of patents. The reason he is gone is telling. First, he is too expensive to keep around at this stage of the game. Second, letting a guy like this go free is like being a farmer and not buying seed for the next seasons crops. When guys like this leave a company, there is no tomorrow; unless that company is supplying a mature product with no room for improvement. C&A is planning and acting like there will be no tomorrow. Have a great weekend. GT TH