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Before 1980, you needed economy of scale only for sedans.
Trucks, Prime Movers, Vans, Pickup were not fashion items.|
How do you handle the ENGINEERING INDUSTRY in the 60 million populated rival states.
Scale only matter with planned obsolescence via rapid model change which GM INNOVATED.
and pick up by the Japanese and Germans.
With national market of at least 2.5 million sedans in France, Italy or Spain, this were rivals.
(Brazil, Mexico, Thailand, Korea were low income could not afford to pay US$1,000 equivalent in petrol or diesel to operate a sedan)
(Bangladesh, India overpopulated, short of resources while China, Soviet Union were stuck with STATISM of the state owned behemoths)
in mid income states,
a new model change would cost US$150 mil, (but income of those states make volume low, eg. Malaya/Singapore 30 million could only sell 0.6million units instead of the 1.2 million units expected in a high income state!!!!)
in high income states, it would cost at least US$500 million to US$1,000 milion.
So, with overheads of more than 2%, many 30 mil to 60 mil with adequate income could have the scale.
What to do next?
Make Pickup trucks, Vans fashioable, planned absolescense!
Suddenly, what was basic only 4 to 5 platforms out of 6 possible platforms
Mini, Small, Compact, Mid size, Large, Luxury
became 15 platforms.
here comes SUV (high baseline), MPV (low baseline), Pickup Trucks.
(Ford new CEO mention 13 platform, they didn't make Mini and Small cars)
Suddenly SCALE needed was 6 million cars!
and not surprisingly RENAULT-CITROEN, FIAT-ALFA ROMEO, SKODA-(what do they have in Spain), HYUNDAI-KIA needed to consolidate.....
now!!!!! ALARM BELL goes up all over the 60 million populated states.
KOREA, FRANCE, ITALY, or well, Spain is not a very successful automotive maker.
Really coooooool, the Amerikan Regime methods!!!!!!!
(who cares how much Germany, or Japan even Singapore/Hong Kong/Taiwan has in RESERVEs, the Amerikan has control of critical technology or has TROOPs stationed in their states!)
HA HA HA
[ Last edited by greendragon at 2009-6-12 01:07 PM ]