Big Three Getting What They Deserve

I have to take a few minutes from my studying to comment on the recent news about the big three automakers’ sales numbers.

GM, Ford, and Chrysler have all posted significant declines in last month’s sales compared to last year because of higher fuel prices AND higher interest rates. For those of you who do not understand what this means, higher fuel prices mean that consumers want MORE EFFICIENT cars and higher interest rates means that consumers want CHEAPER cars because the more you borrow at higher interest rates, the more it costs you.

Unfortunately for the big 3, they, for many stupid reasons, kept making inefficient cars that now people don’t want. In addition, because of inflated production costs, like labor unions, it costs more than it SHOULD to buy American cars.

As a result, Toyota and Honda to name only 2, have cleaned up on sales because they have more fuel efficient cars AND they can make, and thus sell, their cars for much cheaper than their American counterparts.

‘YOU ARE GETTING WHAT YOU DESERVED!’ Which means that you are getting your lunch served by the likes of Toyota and Honda.

My advice to you big wigs at the big three:

1. STOP PAYING DIVIDENDS!!!!! STOP NOW. REINVEST THE MONEY INTO MORE PRODUCTIVE TECHNOLOGY AND EQUIPMENT.

2. MAKE MORE FUEL EFFICIENT CARS. PRETTY SIMPLE REALLY.

3. GET RID OF LABOR UNIONS. THEY MAKE NO SENSE. IF AN AUTO WORKER IS NOT HAPPY WITH GETTING WHAT THE MARKET WILL PAY FOR HIS/HER LABOR, THEN GET A NEW JOB THAT PAYS MORE. I.E. GO BACK TO SCHOOL AND LEARN SOMETHING MORE USEFUL.

4. LEARN FROM THE WINNERS. (HINT, THEY ARE THE ONES MAKING YOU LOOK PRETTY STUPID RIGHT NOW)

The crux of the matter here is that the big three had an acute lack of what I would call vision, foresight or just plain strategic business sense. You see, back in the old days, big business could lobby government and get special treatment – to the detriment of consumers.

HOWEVER, businesses that use this tactic today, or have in the recent past, do so to their own detriment; because the global market for goods and services does NOT care how many politicians you have in your pocket or how strong your union may be, it only cares about one thing – the best available price.

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