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Old 24 Jun 2003, 03:38 am
Marc
 
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Default Re: The Economist: Detroit Finished

brad9876 <brad9876_2000@yahoo.com> wrote:
>cp wrote:
>>
>> > Are you sure? Maybe Jergen Schremmp just wants to keep Germans employed
>> > instead of Americans.

>>
>> I'm VERY sure. Yes, he's most likely thinking of the Germans more,

>
>
>Of course... that makes perfect sense from their point.
>
>
>> but DAimler didn't acquire Chrysler to use their parts.

>
>
>Exactly what is the point of putting high priced parts in medium and
>lower priced cars? Beyond keeping Germans working, there isn't a
>reason.


Sure there is. Putting a more expensive part in more cars can easily be
cheaper than putting cheap parts in one line of cars and more expensive
parts in another.

Economies of scale. They can change what you'd expect would be cheapest.

Marc
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