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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Alighieri who wrote (507628)8/24/2009 4:50:58 PM
From: i-node  Read Replies (1) | Respond to of 1577108
 
>>> Particularly when they build substandard product.

I, too, believe the product is substandard, and that is a result of trying to compete in a market where your labor costs are higher than your competitors. You're going to get a lousier product.

It is NOT, as you have suggested, they're building the "wrong" cars. People love their SUVs. They love their trucks. Some like small cars, others like big ones.

This is why Nissan builds the Armada and after building only small pickup trucks were forced to start building full-sized trucks.

The problem is that when you have to compete with vehicles having much smaller labor costs, it is obvious you're going to have to cut costs somewhere. So, when Nissan spends a dollar extra to put in a little interior light here or there, GM can't do that. When Toyota spends a few dollars to build a better performing engine, GM can't do it. Because ultimately, they have to compete price-wise with Nissan and Toyota.

It is no coincidence that the American automakers declined during the same period the UAW gained all its power. The more powerful the UAW got, the lousier the American automobile got.