Monday, August 14, 2006

Nissan Needs More Production Capacity???

Wasn't Nissan ready to go bankrupt only a few years ago, actually back in 1999????

I'm reading this book by Helmut Becker, "High Noon in the Automotive Industry". I've acutally only just started. It's a good read, but you have go so slow to study the economics.

Becker's research says that both GM and Nissan have about 25% growth capacity available in their plants. So, why then does Nissan need production capacity from GM??? I mean, that was my read on it the past several weeks. How can this lackluster company need capacity from GM, even if GM has capacity...

Because Nissan has been growing at about 7% per year since 2000 and GM has been growing (globally) at only about 2%. You might notice that GM isn't exactly growing in the US, btw.... I'd have never guessed that Ghosn had done so well. No wonder Kerkorian wants Ghosn at the helm of GM.

GM still hasn't figured it out. Delphi at their heels. Medical costs out of control. Each GM car costs about $1650 just for GM medical costs of present employees and past retirees. And today I heard that the US Gov't couldn't care less if they bankrupt. Not like Chrysler and Iacocca back in my youth.....Posted by Picasa


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