Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: Rate_Determining_Step
Somewhere, somehow, in management, some chump decides to chisel away at designs so the subassembly can come in $2 cheaper.

EXACTLY. A few years ago Ford redesigned a part in their truck transmissions to save some tiny amount of money per unit. They started producing the trannies, then discovered that if you floored it, got above 4500 rpm in second gear, and abruptly let off the gas, the transmission would immediately fail every time. So they had to stop production, recall them (none had made it to consumers, fortunately), go back to the old design, etc. I'm sure that wasted more money than they ever would have saved right there. I wish companies (especially--but not exclusively--American companies) would realize that most people do not want to buy a cheap throwaway piece of junk.
46 posted on 03/31/2002 3:25:09 PM PST by mn12
[ Post Reply | Private Reply | To 41 | View Replies ]


To: mn12; Rate_Determining_Step
Unfortunately, I do have to agree with you guys regarding the "cheaply made" parts and their consequences. However, what's the alternative?

If all parts were made to the exacting standards you support, a basic automobile would cost over $35,000! Most of the cost of a modern American car is made up of things such as taxes(huge, and mostly hidden), regulatory costs, legal costs(ALWAYS transferred directly to the consumer), mandatory safety and environmental features, and union labor costs. In other words, things almost completely unrelated to the cost of actually building the car.

Since these factors(especially the government-related ones) tend to inexorably rise year after year, the automakers have to save money somewhere, or no one will buy their cars (note: many of these same factors DO NOT affect foreign manufacturers to the same degree they do to American-based companies).

My own personal suggestions for getting quality, affordable U.S.-made autos? Simple.

1. Tort Reform.
2. Repeal of CAFE standards.
3. Reduction of "corporate" taxes.
4. Reduction or repeal of onerous regulations.
5. Somehow reduce union influence on corporate practices.
6. Tort Reform.

Doing these and some other things would help immeasurably, in auto manufacturing and many other industries as well. Not that I think the "Big Three" are all Saints, but it is useful to realize that not ALL our complaints are their direct fault. Every class-action lawsuit, every new tax on "those evil corporate barons", every wrongheaded environmental regulation and nanny-state safety requirement serves to increase the prices we pay, and reduce the overall quality in an attempt to hold the price line.

Happily, We The People do have some say in those outside costs.


47 posted on 03/31/2002 6:45:28 PM PST by Long Cut
[ Post Reply | Private Reply | To 46 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson