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Old 03-18-2005, 10:31 PM
Brian Carlton Brian Carlton is offline
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Join Date: May 2002
Location: Blue Point, NY
Posts: 25,390
Quote:
Originally Posted by boneheaddoctor
Does anyone else but me see a simularity with the airlines here?
Can't raise prices because the average person won't buy a new vehicle if they do???

Price of raw materials is climbing steadily and there is no way to buy the raw material cheaper due to worldwide demand???

Significant labor required in the business. Most labor is highly paid and has many benefits???

Don't want to cutback production because an idle factory is worse than selling the vehicles at breakeven???

Massive advertising expenses???

Stiff competition from other manufacturers who have lower labor costs and build vehicles overseas???

See any similarity there??

The one significant difference is that the airlines are now marketing a stripped down Yugo while the auto manufacturers continue to enhance the vehicles with enough gadgets and computers to launch one of the damn things to the moon. A direct contradiction to the airline business.
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