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To: Arrowhead

Where do the profits go? Back to Germany or to American stockholders?


20 posted on 04/17/2006 1:22:37 AM PDT by durasell (!)
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To: durasell

Well, that would depend on where you live. Stockholders are from all over the world. Controlling interests are mostly foreign, but American interest are 42+%. Given the proportion of foreign to American, ironically, American interests are by far the stronger. Foreigners from all over the world who have interest in the company are fickle at best (barring German stockholders). Their shares can float back and forth from American to foreign interests more so than American shares.

Furthermore, as a "merged" company, most of the workers are American and more of the combined income from the merger deal is invested in US plants.

The bad news is that ultimately, Dieter Zietche wants to streamline the company to core assembly operations and sell off the components operations-which will more than likely be sold to American companies. That can be good or bad depending on who Chrysler buys from once the streamlining is complete. More than likely, if they buy from the companies to which they sold their components parts, those companies will have to boost quality and reduce costs to keep Chrysler from seeking foreign interests.

The real problem I see in all this is that the competition in the auto industry is grossly underreported. If Americans could see how fierce the competition is, perhaps they would give sway to buy more American cars. Conservative business types are always saying to buy local to keep your local economy strong. However, they would do good to follow their own advice.

Think about this: Do you know why there are so many foreign competitors in this country? Because WE invited them here. Why? Supply and demand! And do you know why American auto companies are suffering? Because WE do not buy their cars. Why? Again, because of supply and demand!

While the quality gap is closing between foreign and local auto manufacturing, it would behoove Americans-if they are REALLY concerned about American jobs going overseas-to put their money where their mouth is and simply BUY AMERICAN!


86 posted on 04/17/2006 10:34:59 AM PDT by Arrowhead
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