Welchism in action: abandon every market but the handful that are most profitable.
Steve
I suppose they could also choose to do the opposite. They could do what Sears and Radio Shack did, stay in nearly every market regardless of profitability … until the competition eliminated them.
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There is a third possibility…
The Captain
Oh, shots were fired for decades. Sad state of affairs the Germans are heading off into Supply-side economics. Better them than us.
If they get there long before the struggling Chinese the Germans get Demand-side economics back first some 40 years from now.
Meanwhile, we truly build huge wealth in the US. “Don’t threaten me with a good time”.
Way back when Sandy Munro rated VW as one of the leading contenders in the EV space but VW decided against it. Read al about it!
They fired Herbert Diess to make sure they couldn't - Google Search.
The Captain
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Auto factories are massive investments. As corporate taxes drop in Germany, the write-offs diminish. It is not worth building a factory in Germany.
Where have I seen people that stupid before?
There are other economic forces at work in Germany. They were here as well.
That said since 2008, the US did not have to be that stupid. We had some folks choosing to be that stupid.
RS stayed everywhere, but cut their product line, and cut, and cut. Audio and video gone. Burglar alarms gone. PA equipment gone. By the end, the core of their business was selling other company’s cell phones and service, with small contributions from RC toys and small parts. Much like we see automakers doing now: progressively cutting whatever model is least profitable, which makes another model least profitable, so it is dropped too. Wash, rinse, and repeat, until Welchian “high grading” has reduced the product line to two or three models.
Steve
From August:
Stellantis, which manufactures Chrysler, Jeep and Dodge vehicles, announced last month it will lay off 2,450 workers at its Warren plant.
And now…
DB2
They believe management’s self-serving spew? Look at the inventory in Stellantis’ system. People don’t want what they are building. And what they build is management’s decision.
Steve
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