I believe you are either off your medication or completely ignorant of
the vast cost reduction of TV's after the US manufacturers got out of the
business. Not only did the prices drop substantially, the quality
I worked on TV's in the seventies and the dog models for failures were
RCA and Zenith. RCA had outright design flaws and Zenith had major
problems with their modular design.
The electronics industry is an example of where innovations reduce prices
instead of being used to price key items as the auto manufacturers do, at
10 fold more than they should be priced because they are the only source.
Many of these items are not high cost items but the manufacturers enjoy a
monopoly on these items for a number of years.
Combine that with the outrageous production worker wages, compared to
other industries, along with management bonuses and you get a 15,000
dollar car which costs 30,000 dollars.
I suspect China will keep the Japanese car manufacturers in line.
One more thing, I remember in the late sixties or early seventies when
GM, Ford, and Chrysler went to Washington with their Lobbyists and
demanded a surcharge on imported cars which they got.
It was around $300 dollars per car. 2 weeks later GM, Ford, and Chrysler
raised the price of their cars the same amount.
That has always been the Pattern. If GM, Ford, and Chrysler still had the
power and a good reputation for quality products, their cars would be
priced above the imports.
When you build crap like engines which self destruct with intake leaks
and plastic intake manifolds year after year and transmissions which fail
prematurely, yet continue production of same, stick the customer with
resulting repair bills instead of fixing the problem, you can't charge
premium prices for such junk.
The strike is getting worse.
More and more plants are closing.
This could be the beginning of the end.
GM is trying to get rid of excessive inventure now during this strike
and during closing of plants.
It could actually become wide spread and get out of hand.
GM has so many days of truck/SUV inventory the UAW is doing GM a major
favor as GM clears out the inventory. The UAW members are on short
rations by theor own choice as they do GM a favor. It will be months
before there is an adverse effect on GM.
Not to worry, most dealerships prefer to have at least a sixty day supply of
vehicles on hand, particularly at this time of year. Some GM dealers have
slightly more that that in stock at the moment but other dealers are selling
more and need to pick vehicles they sell from the dealer pool.
It could be a dangerous game.
GM has closed 29 plants so far.
It is costing
"JP Morgan analyst Eric Selle estimates GM will spend $1.8 billion if
the strike lasts a month, based largely on hourly wage costs,
according to a research report earlier this month."
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