Monday, January 23, 2006
Sorry for my absence
New policy at work, that we're supposed to be careful about what we blog. So I've been maintaining radio silence.
But the Ford story makes me want to log in again.
So Ford is going to lay off 30,000 people. Why? Because they make lousy cars that people don't want to buy.
I've got the same problem with GM. All my life, my family's bought GMs, but the Chevy I've got now is a lemon. I'll never buy a GM again.
The lesson is to forget marketing -- make a product people want to buy, and it'll sell itself. Make a lousy product and you'll eventually go out of business.
Also, think of this: The price of everything goes down. The computer I'm typing this on is probably worth $400, but 10 years ago a computer with this much power would have cost $4,000.
The price of computers has gone down. Why are cars so expensive? How come the price of cars has doubled (or whatever the amount is) while the components in the cars have, assumedly, become less expensive.
But the Ford story makes me want to log in again.
So Ford is going to lay off 30,000 people. Why? Because they make lousy cars that people don't want to buy.
I've got the same problem with GM. All my life, my family's bought GMs, but the Chevy I've got now is a lemon. I'll never buy a GM again.
The lesson is to forget marketing -- make a product people want to buy, and it'll sell itself. Make a lousy product and you'll eventually go out of business.
Also, think of this: The price of everything goes down. The computer I'm typing this on is probably worth $400, but 10 years ago a computer with this much power would have cost $4,000.
The price of computers has gone down. Why are cars so expensive? How come the price of cars has doubled (or whatever the amount is) while the components in the cars have, assumedly, become less expensive.
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That's why FORD stands for "found on road dead", right? We don't buy Fords, either.
It's unfortunate for those employees, though. My brother-in-law is one of them!
It's unfortunate for those employees, though. My brother-in-law is one of them!
American car manufacturers have for a few decades now faced serious problems in identifying what people want and giving it to them. They were in a better position to provide people SUVs because they alredy had the large-scale manufacturign capacity for trucks in place, but it was inevitable that the price of gas woudl go up and that would be the end of that. One wonders what they used all those SUV profits on in the 90s. Apparently they did not use it on effective R&D.
I look at Chevy's and Fords, and the most charitable description I can give them is "uninspiring". Contrast with what Chrysler and Dodge have been doing since the late 90s. A few things may not have worked, but they have carved out a niche as brands that will at least try interesting styling, at every price level. That at least gets people's attention. But the newer Fords and Chevys look to me undistinguishable from those of the mid 90s.
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I look at Chevy's and Fords, and the most charitable description I can give them is "uninspiring". Contrast with what Chrysler and Dodge have been doing since the late 90s. A few things may not have worked, but they have carved out a niche as brands that will at least try interesting styling, at every price level. That at least gets people's attention. But the newer Fords and Chevys look to me undistinguishable from those of the mid 90s.
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