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Old 12-13-2008, 11:28 AM
 
Location: WA
5,472 posts, read 21,917,936 times
Reputation: 6157

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Few if any factories will be sold... two reasons...

1) No one wants to manufacture in a union state. Only factories in 'right to work' states have an attractive value.

2) There is already a huge over capacity in union states so the facilities have much reduced value.
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Old 12-13-2008, 11:33 AM
Status: ""I Must Be Born Again" on Amazon" (set 4 hours ago)
 
Location: Oak Point, TX
7,582 posts, read 12,192,432 times
Reputation: 4541
Quote:
Originally Posted by neil0311 View Post
Maybe, but that also assumes the false premise that bankruptcy means "shut down" and it doesn't. Companies routinely go into chapter 11 and reorganize their debt and their business and come out the other side stronger than they went in. That's the way it's supposed to work...not the spectacle we've been seeing lately.

The false premise that "people won't buy cars from a company in bankruptcy" is just that, especially if the government and 3rd parties guaranteed the warranty. People are fooling themselves if they think that the status quo is anything but an undeclared bankruptcy, with or without the government throwing a few billion in for good measure.

Until the fundamental problems are resolved, these companies will be on the brink.
I'm posting from behind the counter at a GM dealership, and of course I hope you're right. But the experiences of the airline industry can't be compared to this durable goods, service and warranty industry - I beg to differ.
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Old 12-13-2008, 01:10 PM
 
1,126 posts, read 2,476,900 times
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If it is profitable, the Japanese CEO's won't doubt about it. However, I think this is a low blow to American pride.
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Old 12-13-2008, 02:28 PM
 
Location: Marietta, GA
7,861 posts, read 15,209,366 times
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Quote:
Originally Posted by Hasdrubal View Post
I think this is a low blow to American pride.
No...I think it's a testament to dinosaurs that refused to change with the times and meet a market demand. Starting in the 1970s, the US auto industry has been on notice of the changes to come and the Japanese then started eating their lunch, due to things like quality, cost, and fuel efficiency.

The Japanese, and to a lesser degree the Germans and Koreans, have built better cars, for less money, here in the United States. The Honda Accord and Toyota Camry are prime examples. Ford had the Taurus for a while, but squandered that market. Instead of well built and fuel efficient cars, the US companies continued to build huge gas guzzlers and cars made from cheap plastic that fall apart, while their UAW workforce made top of scale wages.

Yes there are some things beyond their control like CAFE and government regulations, but for the most part companies like GM have had 30 years to adjust and did little to meet the challenge.
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