03-15-2007, 12:29 PM
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#8 (permalink)
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Research is Your Friend!!
Join Date: Jan 2007
Location: Texas
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Quote:
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Originally Posted by toyotafanfan
No the point is that you do business in the climate that you live in. Imagining is for fools.
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Quote:
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Originally Posted by toyotafanfan
Fan
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Huh?
No, the point is:
It's a global economy, and for one nation to purposefully manipulate it's currency to benefit it's own manufactures’ is unfair and a practice that should not be excused. There will always be exchange rates, no doubt, but these rates should be influenced by a FREE MARKET, and not by government policies.
I do not know how to fix this, that is not my area of expertise, but I do know that the yen being 12% would make the American products alot more appealing. Take a loaded Camry ($32,000) and Impala ($30,000). The Camry has more equipment, and is by most accounts a better vehicle. Now, take on a 12% "readjustment" fee due to the yen being undervalued. That's a $3840 increase in price. Now, how may car buyers would skip the $36,000 Camry and instead buy the $30,000 Impala (or 500, or 300C). Now, what if GM, instead of keeping the price at $30,000 decided to invest $3000 per car into the Impala, do you think that would make for a better Impala? You bet it would. This disparity is even more pronounced with the Luxury cars. Domestics have to stay competitive (price wise), so they do that by offering less content, or the dreaded "corporate radio" so many here hate. It's not always about GM being cheap, it has alot to do with GM and Ford’s current disadvantage in the world economy (healthcare, pensions, and making cars/buying parts with US dollars).
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Last edited by engineer; 03-15-2007 at 12:32 PM.
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