[lbo-talk] Junkyard dog hits Motown

Russell Grinker grinker at mweb.co.za
Wed May 16 05:28:48 PDT 2007

Could it be because they failed to invest sufficiently to redesign and retool and stay abreast of the hungrier foreign competition, producing only what someone once called "40 foot behemoths with kiddie-car breaks and rubber- band suspension"? Isn't this sort of thing your area Doug? Why did they fail to innovate?

-----Original Message----- From: lbo-talk-bounces at lbo-talk.org [mailto:lbo-talk-bounces at lbo-talk.org] On Behalf Of Doug Henwood Sent: 16 May 2007 01:43 PM To: lbo-talk at lbo-talk.org Subject: Re: [lbo-talk] Junkyard dog hits Motown

On May 16, 2007, at 6:56 AM, Michael Smith wrote:

> My point was, it isn't an isolated or exceptional case. I'm not
> sure what the
> reasons for it are. I suspect early domination of the field, more
> even than
> monopoly.

The US auto industry has been subject to strong competition from abroad for more than 30 years, yet still they just kept falling behind. They got a break during the era of low gas prices, when people bought high-profit SUVs, but now that gas is $3, they're losing again. We have lots of skilled workers at every level - and Toyota and Honda have no prob making money in the US. What's wrong? Why have they been so unable to get their shit together?

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