Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (223)	9/2/2005 3:06:15 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 218256

Why do Ford and GM build such large cars? Because those are the only cars they can make profitably. Why? Because they have no serious Japanese competition in the large car / personal truck /SUV segment of the market. In the smaller car market, the Japanese cars offer far more value for the money - even though American cars are cheaper on an absolute basis. Poor people buy American cars because they can't afford to buy the car they really want. As is usually their lot, they end up spending more on their inexpensive American car in an endless series of repairs. If GM could replace their workers with free labor, their cars would cost $2,400 less. This is roughly the same amount of discount GM is currently offering by extending their "employee discounts" to the general public. Yet in spite of these additional sales, GM's market share continues to decline. When you make cars few people want to purchase, no amount of cost savings will save you from oblivion. .