On Sun, 07 Dec 2008 05:35:04 -0800, Larry Jaques
wrote:
snip
I think their lesson will be to buy a company which is bloated at the
top and the bottom. They may replace the bloated salaries of the
management but the union is there to stay without a Chapter 7
amputation of the afflicted wages.
snip
Major problem [or opportunity from their point of view] is that
when they own the brand names they can make the cars where every
they wish and then import, much like the "domestic" brand name
consumer electronics such as VCRs, blu-ray players and TVs [e.g.
RCA, Magnavox].

After purchase, they can keep most of the dealer networks and
brands, keep some but not all of the sales, marketing, design,
and spare parts staff/facilities, and liquidate the rest.

Detroit is among the top car importers now, and they also import
major amounts of high value added components [engines,
transmissions, electronics] for domestic assembly so this is
simply an extension of the existing situation, not something new,
and has been in progress for at least a generation. Consumer
electronics, consumer optics [cameras], textiles/clothing, shoes,
tools, and many other economic sectors have already gone this
route.

Detroit had a cow several years ago when adding "country of
origin" and/or "percent domestic content" information on the
existing new car dealer sticker was proposed, claiming it would
cost too much. As in so many things, a cost reduction can be
obtained here with "China" and "100%" pre-printed on every dealer
sticker...


Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).