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Technology Stocks : The *NEW* Frank Coluccio Technology Forum -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (36795)	11/20/2010 12:36:40 PM
From: elmatador	Read Replies (1) \| Respond to of 46821

I had production in mind when I went testy. It made sense. But then stopped. I illustrate with this case: Germany used to produce mechanical filters for Channel Modems (FDM). They did not want to farm out (to its Brazilian affiliated) the polishing of the vibrating mechanisms, done with lasers. They developed one that was made by some micro sandblasting. That was OK, LATAM was still buying a lot of FDM there. And from there they supplied the rest of the world. While Germany's older plants were going digital. Same as if Daimler had older truck models that were supplied from South Africa or Brazil Here the mistake started. They stated giving more and more salary increases to their employees. Out of suddenly they discovered: Our production employees are price out of the market!!! Let's make the factories abroad. Every time Germany had a strike I could see a hole in the ground west of São Paulo with a Siemens Transformer factory or automotive cable harness plant coming up. That amounted to: Buy social peace (labor-capital harmony). And commit suicide. It was then that I heard the let's send all the cheap bits and lets concentrate on the R&D, marketing and Sales and let people sort production out. It worked with sporting goods, footwear, textile, it will worked for everything. Now the Western industrialized landed themselves on that situation and I get testy with a reason.

To: Frank A. Coluccio who wrote (36795)	11/20/2010 12:41:10 PM
From: elmatador	Respond to of 46821

GM history in the second half of the 20th century is a story of executive arrogance, missed opportunities, poor decision-making and reckless finance. After WW2, everyone was making money hand-over-fist, and GM became known as “Generous Motors.” Starting in the mid-1950s, rather than risk a strike that could slow production and sales, GM chose to kick the can down the road. When it came to wages, and benefits, the execs made the union contracts, guaranteed pension benefits, health care costs someone in the future’s problem. Then the future arrived. roubini.com