Friday, March 11, 2011
Because I'm such a motor head I find the unethical behavior of the Auto Industry the hardest to swallow. It strikes right at the heart of my favorite pass time. Detroit can make money on trucks and up scale auto's but not on low cost cars. These sell on slim margin's. But wait all is not lost. We can do what the printer manufactures do. Sell a printer for near cost $59 and ink cartages for $79. Boost the price of parts and labor up. Make parts that fail just after warranties. Sell over priced extended warranties. Sell high interest loans. Then smile a lot and give out free coffee and people won't notice that their getting screw. People just think its normal to take your car in and pay over a thousand for minor repairs.
Thursday, February 24, 2011
Everyone want's to be boss except the sheep.
A lot of people like to chart their your destiny. This is a very good thing in todays society and makes for diverse range of products and services to choose from. There's even a fair amount of competition in industries that don't have large barriers of entry.
Big companies all started from scratch. Once they have economies of scale that alone will give them dominance in some fields. When they do a risk accessment they find there dominance is not alway assured. To protect profits and shareholder other barriers are sot out. Regulations and laws are one good way to do it. With all the laws and regulations in the Auto, Mobile phone, and Utilities competition is pretty well stymied. This leads to a lot of crownizm in all three layers of Gov't.
Another trick predatory proprietary. Why doesn't a 14" GM wheel fit on a Ford product. By adding computers to a lot of the components brakes, transmission, engine etc they are holding the consume hostage. You are pretty well stuck with what ever the dealer wants to charge. Independent shops had to lobby Gov't to get the codes generated by these computers.
Built in obsolescence is another profit center. GM petition the Gov't to have a shorter life cycle for there cars and the Gov't agree with them because it created job's. I guess they are both in agreement that you need crappier car's.
Big companies all started from scratch. Once they have economies of scale that alone will give them dominance in some fields. When they do a risk accessment they find there dominance is not alway assured. To protect profits and shareholder other barriers are sot out. Regulations and laws are one good way to do it. With all the laws and regulations in the Auto, Mobile phone, and Utilities competition is pretty well stymied. This leads to a lot of crownizm in all three layers of Gov't.
Another trick predatory proprietary. Why doesn't a 14" GM wheel fit on a Ford product. By adding computers to a lot of the components brakes, transmission, engine etc they are holding the consume hostage. You are pretty well stuck with what ever the dealer wants to charge. Independent shops had to lobby Gov't to get the codes generated by these computers.
Built in obsolescence is another profit center. GM petition the Gov't to have a shorter life cycle for there cars and the Gov't agree with them because it created job's. I guess they are both in agreement that you need crappier car's.
Subscribe to:
Comments (Atom)