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  #1 (permalink)  
Old 06-03-2009, 10:19 PM
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Celby,

The mentality of people you are talking about is beyond my understanding. To me, that is just plain gross, and if those people populate (dominate) the auto industry, then it is time to shut them down. If, however, what you are talking about is the exception, rather than the rule (as I suspect), then there is no need for unions today.

Steve, its a terrible circle, is it not? Pay them more so they can afford the product, then raise the price so they can get paid more to buy the product.

Mike
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Old 06-03-2009, 10:29 PM
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Quote:
Originally Posted by bomelia View Post
Celby,

The mentality of people you are talking about is beyond my understanding. To me, that is just plain gross, and if those people populate (dominate) the auto industry, then it is time to shut them down. If, however, what you are talking about is the exception, rather than the rule (as I suspect), then there is no need for unions today.

Steve, its a terrible circle, is it not? Pay them more so they can afford the product, then raise the price so they can get paid more to buy the product.

Mike
WHICH people are you referring to?
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Old 06-03-2009, 10:43 PM
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Both. Re: your first post in this thread.
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Old 06-03-2009, 11:29 PM
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Originally Posted by bomelia View Post
Celby,

Steve, its a terrible circle, is it not? Pay them more so they can afford the product, then raise the price so they can get paid more to buy the product.

Mike
Well, it worked for Ford (and it is actually more complex than that).

Ford dropped the price of his product significantly - this allowed more customers the means to afford his product and he was able to take advantage of the economy of scale. Ford was then able to hire the best workers, and further increase his productivity. The ones didn't make the cut then had to learn how to be more productive in order to compete in the workforce.

Japan did the same thing to the US when they first entered the market.

Steve
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Old 06-04-2009, 06:07 AM
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That was then, this is now. Today (well, in healthier times) auto workers were allowed to buy cars at a price so good that they could drive it for one year, sell it, and never get upside down in it... even make a little profit which was then used to buy another car. Essentially, they drove the cars for free. The auto companies tried to take advantage of this by selling to the public the same way... but when everybody is doing it, it doesn't quite work out. And even then, I doubt the public was getting the same price.

I actually thought that was an excellent idea.

Mike



Quote:
Originally Posted by VRM View Post
Well, it worked for Ford (and it is actually more complex than that).

Ford dropped the price of his product significantly - this allowed more customers the means to afford his product and he was able to take advantage of the economy of scale. Ford was then able to hire the best workers, and further increase his productivity. The ones didn't make the cut then had to learn how to be more productive in order to compete in the workforce.

Japan did the same thing to the US when they first entered the market.

Steve
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Old 06-04-2009, 06:40 AM
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Take a look at what investors think.

http://www.bloomberg.com/apps/news?p...d=a_vZ7JsMlHkE

I like the part at the end where it says that Ford doesn't have an unlimited checkbook and GM will not be allowed to fail.

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Old 06-04-2009, 07:13 AM
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Wayne,

GM will not be allowed to fail.



With our Govt. involved in the running GM I wouldn't bet to heavily on that. And now that the UAW owns part of GM, will they strike against themselves for more pay and benefits?

Ron
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