That was then, this is now. Today (well, in healthier times) auto workers were allowed to buy cars at a price so good that they could drive it for one year, sell it, and never get upside down in it... even make a little profit which was then used to buy another car. Essentially, they drove the cars for free. The auto companies tried to take advantage of this by selling to the public the same way... but when everybody is doing it, it doesn't quite work out. And even then, I doubt the public was getting the same price.
I actually thought that was an excellent idea.
Mike
Quote:
Originally Posted by VRM
Well, it worked for Ford (and it is actually more complex than that).
Ford dropped the price of his product significantly - this allowed more customers the means to afford his product and he was able to take advantage of the economy of scale. Ford was then able to hire the best workers, and further increase his productivity. The ones didn't make the cut then had to learn how to be more productive in order to compete in the workforce.
Japan did the same thing to the US when they first entered the market.
Steve
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