What American Company Will The Chinese Destroy Next?

You realize that the overcapacity was the result of a consolidation dynamic going on among car makers since the '70s, when the Japanese tried to flood international markets and built up very large volumes.

The idea was that only a few (estimates were around seven) car makers, worldwide, would be standing by 1990 or so. Thus, everyone who could do so went on a buying spree, eating up weaker car makers.

They all knew there was excess capacity but the hope was that they could begger the other guy into insolvency and eat him up. They had to push for maximum volume in the meantime to keep the financials strong and to strive for market domination.

It didn't work out as planned, but the overhang of capacity is still there.

Reply to
Ed Huntress
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Well, that, plus the currency and technology-transfer dynamics that I mentioned. Under his theory (at least what I recall about it), currency adjustments would work very quickly to re-balance trade. And technology would not transfer as quickly, nor as massively, between advanced and developing countries. I think he would have been astonished at what happened with the GM-Shanghai engine plant, for example. Things just didn't happen that quickly; currency adjustments were a great buffer; and stable, balanced trade would be the result of free international markets.

It was a good idea in 1960. It just hasn't worked out, because many things have changed.

If you can answer that, there are entire countries that will build monuments to you. d8-)

We don't know what to tell them. I told my kid to go do his homework, too. But I think he has a pretty good idea. There is a lot of demand for the skills he's developing in a graduate program in applied math, backed by his economics degree.

Still, it's no guarantee.

Well, the question is, what kind of world are we building for ourselves now? One in which we have to keep beggering our incomes down to compete with the newest, cheapest global manufacturing country?

I guess if we all jump off the cliff together, we'll all hit bottom at about the same time. It just doesn't sound like fun.

Reply to
Ed Huntress

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And the overhang capacity continues to increase.

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The Volkswagen AG (VOW) unit is planning to add new plants at an unprecedented pace to chase luxury auto leader BMW. Until three years ago Audi produced 75 percent of its vehicles in the German cities of Ingolstadt and Neckarsulm, focusing largely on increasing quality and expanding its model lineup.

----------------------- What are these people smoking?????

Reply to
F. George McDuffee

Indeed they are.

Those that still have a job that didn't get sent to China.

Gunner

One bleeding-heart type asked me in a recent interview if I did not agree that "violence begets violence." I told him that it is my earnest endeavor to see that it does. I would like very much to ensure

- and in some cases I have - that any man who offers violence to his fellow citizen begets a whole lot more in return than he can enjoy.

- Jeff Cooper

Reply to
Gunner

Read about it somewhere a while back.=20

As much as we'd like to bring back the manufacturing back to US, there's a = reason most companies consider China as default choice: the infrastructure = is not here anymore and it is there in a big way.

Industrial parks are chock full of suppliers of everything imaginable. Ther= e's a guy across the street that will get your plastic molding figured out = and mass produced in days. There's another one minutes away that will desig= n/build your custom screws . And on and on, including having supplies of ev= ery metal, plastic and rubber needed to make darn near anything.

Waking up a dorm in a middle of a nite and getting 10,000 workers to assy f= loor at 2am in the morning to meet Apple's deadline (cause a truck carrying= the long delayed parts has just arrived) is not doable in the States and i= s absolutely a norm in China.=20

Much anger was expended over SF awarding the bridge manufacturing to China,= but we simply don't have the metal works that are big enough here in US. N= o one will finance building one just for this one timer deal.

As a nation, we wuz firmly on a path of shedding them boring and low paying= manufacturing skills and turning into nation of financial advisers and rea= l estate agents - that wuz the pipe dream sold to us. We all bought into, h= ook & sinker.

Reminds me, a bit, about irrational exuberance of 1990's in USSR - we felt = that shedding communism, dissolving the Union and embracing the free market= cut throat Milton Freedman BS will get us rich & prosperous overnite ... w= ell, payback is you know what. 20+ years later ppl still dont know what hit= em. But I digress.

Stopping short of all-out war production effort of 1939-44, I am afraid the= re is no ez solutions to jump starting the manufacturing in good ole US of = A.

Not all is lost. I am still hoping for "socially-responsible" behavior of c= ompanies helping us out of this ditch. For example, Microsoft could take a = stand on Surface devices: it has to be made in the States. They certainly h= ave the coffers big enough for it. It will be painful - to secure facilitie= s, workforce, materiel etc . But then they'd have a hell of public support= . I, for one , will vote with my bux.

Like I did when I bought American-made Passat few months ago. Laughing all = the way to the bank with 50MPG hwy and also knowing some of my money went t= o folx in Chattanooga TN.

Reply to
r11

The USA could do that, and more. If we weren't under hostile regulations. I'm hoping for socially responsible behaviour out of Washington, DC.

Christopher A. Young Learn more about Jesus

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.

As much as we'd like to bring back the manufacturing back to US, there's a reason most companies consider China as default choice: the infrastructure is not here anymore and it is there in a big way.

Industrial parks are chock full of suppliers of everything imaginable. There's a guy across the street that will get your plastic molding figured out and mass produced in days. There's another one minutes away that will design/build your custom screws . And on and on, including having supplies of every metal, plastic and rubber needed to make darn near anything.

Waking up a dorm in a middle of a nite and getting 10,000 workers to assy floor at 2am in the morning to meet Apple's deadline (cause a truck carrying the long delayed parts has just arrived) is not doable in the States and is absolutely a norm in China.

Much anger was expended over SF awarding the bridge manufacturing to China, but we simply don't have the metal works that are big enough here in US. No one will finance building one just for this one timer deal.

As a nation, we wuz firmly on a path of shedding them boring and low paying manufacturing skills and turning into nation of financial advisers and real estate agents - that wuz the pipe dream sold to us. We all bought into, hook & sinker.

Reminds me, a bit, about irrational exuberance of 1990's in USSR - we felt that shedding communism, dissolving the Union and embracing the free market cut throat Milton Freedman BS will get us rich & prosperous overnite ... well, payback is you know what. 20+ years later ppl still dont know what hit em. But I digress.

Stopping short of all-out war production effort of 1939-44, I am afraid there is no ez solutions to jump starting the manufacturing in good ole US of A.

Not all is lost. I am still hoping for "socially-responsible" behavior of companies helping us out of this ditch. For example, Microsoft could take a stand on Surface devices: it has to be made in the States. They certainly have the coffers big enough for it. It will be painful - to secure facilities, workforce, materiel etc . But then they'd have a hell of public support. I, for one , will vote with my bux.

Like I did when I bought American-made Passat few months ago. Laughing all the way to the bank with 50MPG hwy and also knowing some of my money went to folx in Chattanooga TN.

Reply to
Stormin Mormon

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