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

To: elmatador who wrote (1237)	10/20/2005 2:04:42 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 218578

And what does this have to do with the internal politics of China? Nothing. You respond with an irrelevant topic you apparently know little about. GM is not competitive in the world market, even if they employed unpaid slaves to build their cars. Their total labor cost of $2,200 for each automobile they sell at an average cost of $30,000 is insignificant. GM has maintained sales by offering buyers large discount - creating a loss of $2,500 per car sold. GM could break even only if the were provided with a workforce of unpaid slaves AND a $300 subsidy per automobile sold! Toyota Honda and German auto makers pay their workers in the US nearly identical or superior wages to those paid by GM. But there's a huge difference. Toyota, Honda and German car makers manufacture automobiles that people actually want to buy -- even without offering money losing discounts. GM became irrelevant decades ago by refusing to innovate. They said what was good for GM was good for America, so they didn't have to improve their products. So they have been run out of business by people who actually cared to improve their products. The only reason GM is still in business is that their GMAC finance arm went into the business of making Home Loans. Their Ditech subsidiary lends home owners 125% of the value of their homes so they can continue to spend more than they earn and buy additional crap from China. If you can't figure out the problem in this scheme, I will tell you that lending someone 125% of the value of their collateral is quite risky, especially when you experience an economic downturn and the value of that collateral declines. GM has made themselves into a ticking time bomb which will implode with little advance notice. Your understanding into the world of business appears to be limited to that of a plantation worker who, after spending decades harvesting sugar cane by hand for a large global conglomerate, imagines he has gained the insight required to run the conglomerate himself. Instead you seem to have learned little beyond the fact that Mr Chefe likes cream, but no sugar, when you serve his coffee and he likes you to keep your machete sharp so you can pick cane faster. gandalf.it .