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AUTO INDUSTRY : KRUGMAN SEES LITTLE HOPE

 
 
cicerone imposter
 
  1  
Reply Mon 8 Dec, 2008 04:21 pm
@maporsche,
It's never about "building another factory." It's about management's ability to run a business for the long-term; that means quality, fuel efficient cars, that the consumers wants to buy - not only when gas prices are high, but for the long term - no matter what gas prices are. The US is the only country who complains about $4/gallon gas when most other countries have been paying over $4/gallon for a very long time. "Those" countries have always understood that quality and fuel efficient cars was the only way to compete in the world marketplace. Detroit snubbed their noses in the past when we had line-ups to buy gas, and other periods of high gas prices when they reacted just for the moment, and went back to gas-guzzlers. They wonder why they're now in trouble.

I heard a congresswoman today on tv who was saying that Detroit needs the money to "retool" their factories. It's not about "retooling." Vehicle sales are down for all car-makers. It's the economy, stupid! Retooling will not help anything, because the management in Detroit never understood how to compete well.
maporsche
 
  1  
Reply Mon 8 Dec, 2008 04:28 pm
@cicerone imposter,
I understand. I was answering hbg's question about why states aren't offering the big 3 any incentive to build a factory in their state, but they are offering incentives for other car companies. From what I understand it's been decades since the big 3 built a manufacturing factory, so state incentives aren't the issue here.
0 Replies
 
Thomas
 
  1  
Reply Tue 9 Dec, 2008 08:11 am
@hamburger,
Krugman says he's been misreported.
in his blog, Paul Krugman wrote:
Me, misreported

Urk. I gather that there’s a report on the wires quoting me as saying that the US auto industry would disappear. What I actually said was that the concentration of the industry around Detroit would disappear.

And did I really say “me and my colleagues”? I guess it’s possible " but that doesn’t sound like I speaking.

http://krugman.blogs.nytimes.com/2008/12/08/me-misreported/
hamburger
 
  1  
Reply Tue 9 Dec, 2008 11:57 am
@Thomas,
thomas quoted :

Quote:
And did I really say “me and my colleagues”? I guess it’s possible " but that doesn’t sound like I speaking.


i was a little surprised to read "me and my colleagues" - but have heard it fairly often now . wouldn't be surprised if "me" becomes the new "I" .
hbg
cicerone imposter
 
  1  
Reply Tue 9 Dec, 2008 11:58 am
@hamburger,
Spot on! Me into I.
cicerone imposter
 
  1  
Reply Thu 11 Dec, 2008 10:06 pm
@cicerone imposter,
The auto company bailout failed, because the union didn't want to compromise on their wages until 2011 when their current contract expires. They'd rather be without a job; their choice. They shouldn't be bailed out anywhos.
maporsche
 
  1  
Reply Thu 11 Dec, 2008 10:28 pm
@cicerone imposter,
I saw this on the web and actually yelled out "YES!". I don't think I've ever done that before.

I hope the Congress can keep this from happening. Go Republicans!
cicerone imposter
 
  1  
Reply Fri 12 Dec, 2008 12:09 am
@maporsche,
Yeah, I yelled "YES" too, but I know how the market will react to it tomorrow. On top of all that, there's an old time, very huge, ponzi scheme player who's been arrested for fraud in the billions, and that's going to be the straw that breaks the camel's back that;s going to make the market look like a drunk sailor. Be ready to puke...
0 Replies
 
hawkeye10
 
  1  
Reply Mon 31 Aug, 2015 12:34 pm
As long predicted by me Fiat seems unable to save Chrysler. They are currently trying to get GM to save them but GM has no interest.

http://www.autonews.com/article/20150830/INDUSTRY_ON_TRIAL/308319981/marchionne-puts-the-squeeze-on-gm;-gms-response:-why-bail-out-fca?
roger
 
  1  
Reply Mon 31 Aug, 2015 03:49 pm
@hawkeye10,
That's interesting, mostly because I can visualize driving a Chrysler. I cannot visualize even being inside a Fiat.
hawkeye10
 
  1  
Reply Mon 31 Aug, 2015 03:56 pm
@roger,
This is who we depended on to save Chrysler:

Quote:
Fiat market share in Europe has been falling steadily from 2009 through 2014, and the brand has lost over 2 percentage points of market share during that period. In a market already in decline, that translates to losing almost half their volume in four years time!

The reason for this steep decline is clear: an aging line-up. Fiat CEO Sergio Marchionne, who has saved Fiat from bankruptcy back in 2004/2005, said that he thinks it’s a waste of money to introduce new models in a depressed market. So he has held back development of new models for both Fiat and Alfa Romeo, and he tried to fix Lancia’s lack of (new) products by selling rebadged Chrysler models in Europe.

http://left-lane.com/european-car-sales-data/fiat/

Fiat does not have the money to develop cars or tech, and there are new fule standards coming that they cant meet. They are done unless a white knight shows up.
0 Replies
 
 

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