Monday, November 13, 2006

Detroit's inherent $2,400 per car profit deficit

A consulting group has analyzed the structural disadvantage US carmakers have competing against non-US production. (Let's ignore for a minute US-based plants of foreign companies.)

The deficit is broadly spread among labor, financing, and sales, and seems deep, indeed. It also doesn't seem like a gap that could change greatly any time soon, unless one or more of the Big 3 entered bankruptcy. (Think the UAW is going to give up 10 vacation days and break time?)

With numbers like these, why would anyone invest in a US automaker?

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With my new friends on the Great Wall of China

With my new friends on the Great Wall of China
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World sun clock

Uncommon Man's Creed

"I do not choose to be a common man. It is my right to be uncommon -- if I can. I seek opportunity -- not security. I do not wish to be a kept citizen, humbled and dulled by having the state look after me. I wish to take the calculated risk; to dream and to build, to fail and to succeed. I refuse to barter incentive for a dole, I prefer the challenges of life to the guaranteed existence; the thrill of fulfillment to the stale calm of utopia. I will not trade freedom for beneficence, nor my dignity for a handout. I will never cower before any master, nor bend to any threat. It is my heritage to stand erect, proud, and unafraid, to think and act for myself, to enjoy the benefit of my creations, and to face the world boldly and say, "this I have done." All this is what it means to be an American." -- Anonymous