Th End Of Choice, Volvo, et al

A thoughtful post.

Ford bought Volvo, Jaguar. (as my old dad used to say) "Dadgum", I hated that.

So the notion is that consolidation is good. Mergers, buyouts, etc. Consolidating redundant functions. Keep that theme in mind. One Accounting dept, one IT department, one Marketing Dept., etc. (And we'll outsource whatever we can, you know the "Almighty Dollar" and it's irrepressible preferences for efficiency, and of course you know India is posed as a nation to eclipse the entire middle class in all "Western" nations via outsourcing. And why not, if it's better cheaper faster, etc. (Whatever, that's another discussion.))

So, lets get sophistic, and take the example to the extreme.

Eventually, after uncountable mergers and buyouts, the is only one car company... we'll call it the omni car. Everyone drives one of the 9 different models of the "Omni Car".

The free marketeers (Read conservative, if American read Republican) say "Great!, more power to them!", economies of scale and the like, delivering to the consumer a better product. The pure market at work. The market will make us whole, the market is our mother, our father, our benefactor at large.

So some would say that time was ripe for an upstart, a rival sprung from the seeds of necessity, right place at the right time, etc ,etc. And that would have been true prior to the tech-age we live in. The problem is that we have a thing called the "Experience Curve" and an upstart could not compete due to the impossibility of acquiring their own proprietary (as their rivals cradle) technology. The "Omni" car would be very advanced, after all. It would comprise, as proprietary data, 100 years of automotive knowledge.

Would your banker give a loan on something other than one of the "Omni" models?

It's rather depressing, sorry to have posted it.

Reply to
Steve
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Nah, I'm not sorry you posted it. I'm in full agreement, and have additional comments that I'll hold for now (getting off-topic). I've been mostly unemployed for a year and a half due to exactly the types of principles and policies you described. And I don't think any part of the marketplace is the better for it.

Bruce Pick

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Steve wrote:

Reply to
Sender

Sounds like the story of the American automobile industry post-WWII. The major makers out incredible pressure on the small guys and effectively killed them off. Too bad, since the Tucker was a better, more advanced automobile than any of the other maker's models. Collapsible steering column, seat belts, shatterproof glass, unibody construction, etc ...

Now the US only has the big three, and they are gobbling up the more successful auto/vehicle manufacturers around the globe.

Reply to
Greg Cearley

We only had the Big 3 in thr U.S. until Japanese and European auto makers brought new ideas to the U.S. market. Their competition forced the U.S. companies to wake up and make better cars. B.t.w., one of the Big 3 was bought by a German company, not the other way round.

As for jobs, it works both ways. I worked for alomst 20 years, until I retired, for a U.S. comany that got half its sales and more than half its profits overseas. The overseas sales created a lot of well-paying jobs in the U.S.

When I toured India and Nepal, I saw the result of India's protectionism. Indian citizens were smuggling foreign products in because the home-made ones were so bad. They have changed their policies now. And it is creating jobs for them. Until now, Indian citizens with engineering and science degrees had to move to the U.S. or Europe to find jobs.

Reply to
Marvin Margoshes

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