The object lesson here is to be profitable rather than being the biggest producer by volume.
For example (as per the above link) the US led the global numbers production market leading into
the GFC but were on US Taxpayers Corporate Welfare within two years and they have never recovered
financially since.
In the late 90s , Japanese manufacturers such as Nissan & Mitsubishi hit the rails and required a bail out
by Renault (partly owned by the French Government) which has resulted in the current corporate "Dogs Dinner)
IMO, the current recession will see the production gap between China and the rest of the world widen because
the US, Europe & Japan will have little stomach to offer further lifelines and instead will require these manufacturing
giants to live within their means.
Up to 20 years ago high volume manufacturers could rely on spare parts sales for profit to keep them afloat like the way
printer manufacturers rely on ink cartriges to keep afloat but cheap Tiawanese & Chinese "will fit parts" have scotched
that laying hen!
Companies like VW (despite dieselgate) BMW, Benz & Toyota have managed to remain profitable and off Government drips
but this recession/depressing will be telling, IMO.
Tectonic economic shifts are happening and, from history, the Auto manufacturing industry over the past 100 years is a good indicator
or these macro trends whether we like it or not, IMO.
- Forums
- Humour
- Video shows change in global automotive manufacturing
The object lesson here is to be profitable rather than being the...
- There are more pages in this discussion • 27 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)