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Automotive News & Views Buying American Cars What Does It Mean?
7263 messages, Last post on May 27, 2009 at 4:31 AM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
With parts coming from everywhere, does "Buying American" have much meaning anymore? Is quality and price the bottom line?
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Replying to: fezo (Oct 22, 2008 1:46 pm) Remember T.V.? Admiral, anyone? When you make it better, customers take notice. Period. You can't set a price and then give your profits away in incentives to grow sales year after year. Not with a flawed cost base. Oh, and disregard market changes. Reminds me of the British army in the Revolutionary War. Never break formation. OK, easy picken's! Too bad GM did not see their formation being picked off by the Asians. Look out below! Regards, OW
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Replying to: circlew (Oct 22, 2008 1:57 pm)
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Replying to: fezo (Oct 22, 2008 2:22 pm) Does anybody even make tv's in the United States anymore?
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Replying to: andre1969 (Oct 22, 2008 4:15 pm) I'd guess not in the last 25 years. It's sad to say, but I was happy that my Sony LCD I bought a few years ago was made in Japan and not China.
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Its not consumers' jobs to continue to support companies who produce inferior goods. Indeed, continued support to date is the only reason the "Big three" even continue to exist. Chrysler would have gotten out of business already were it not for past government intervention. Supporting mediocrity encourages such behavior, Sure, the big three have improved their products, sbut o has the competition. All things being equal I'd rather buy American, but at this point an american car manufactuer would have to prove a superior product, not just be on par with the imports. I'll save my money and spend it on other American goods and services worthy of my hard earned dollar. The big three focused on short term prfotability without considering long term consequences. They overpaid their workers and retirees (which was supportable at one time), did not invest in product development and caught with their pants down when gas went through the roof in the seventies. They've failed to learn from that mistake and repeated it again in the present. No sympathy here.
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Replying to: dieselone (Oct 22, 2008 4:39 pm)
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Replying to: myershift (Oct 22, 2008 1:07 pm) This is commonly stated but I say incorrect. If you assume a profit margin on a car of 10% (it's actually less than that, and zero for recent US automakers), then 90% of the value of the car is spent where the parts are made, the car is assembled, and the advertising dollars are spent. 10% is sent to the country of origin. So for say, the Honda Accord: 90% of the money stays in the US (minus any foreign components) - workers, factories, parts, advertising, etc. 10% - goes to Japan For the Ford Fusion: 90% of the money stays in Mexico (minus any components sourced from the US) 10% of the money (if it were profitable at all) would go to the U.S. So explain again why it's better to buy a Fusion than an Accord?
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Replying to: myershift (Oct 22, 2008 1:07 pm) You are assuming that the profits are much larger than the salaries paid out / investments being made. Considering that even very successful auto companies struggle to make 10% net margins, I would say the country which is receiving the salaries and investments is better off (especially when there are no profits to be made at all) - at least in terms of cash-flows.
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Replying to: manegi (Oct 22, 2008 9:11 pm) Here is the story of a guy who made money, shared and is now helping people in Detroit. He is a saint on earth. Proves you can use money to help people outside the board room! GM, Chrysler, Ford...this is for you guys/gals to digest! Bob Thompson Regards, OW |
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Replying to: fezo (Oct 22, 2008 2:22 pm) Philadelphia was once home to the large appliance and consumer electronics manufacturer Philco. Now the only things manufactured in the neighborhood where Philco was once located is crack rocks and blunts.
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