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Ford Motor Co. Message Board

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  • lrking1 lrking1 Dec 12, 2008 2:46 PM Flag

    Lower car price, people will come

    if you read my post correctly, you'd see that I did say to bring costs down so that you could charge less, not keep the same cost of production and just charge less. don't need to be a genious to figure that out. if they didn't think they had the government as a backdrop, that's exactly what they'd be forced to do. let them go into ch 11.

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    • We read your post correctly. It is as idiotic the second time as the first. As a matter of fact, it is a monument to Idiots everywhere...lol!

    • That is a lot easier said than done. Material and labor are only a small part of the costs. Land, design, insurance, engineering, tooling, research, and of course pensions and health care are a monster part of the cost. Just closing a plant does not stop the cost of the building, ins, etc, it goes on and on until of course you sell it, but that is not happening in this market.
      Even white collar expenses go on long after the people have been laid off. Cutting costs is difficult and it is very slow to show a return.
      Fixed expenses are the killers, not the variable expenses.

 
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