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douggreen 12/5/2012 | 3:13:02 AM
re: Looking at M&A Aftermath Why,

THe equation in laptops is not the same as in cars. The phenomenon of outsourcing of car production to the US from Japan has not occurred in the electronics industry. What about TVs? Stereo equipment? None of this has been produced in the US in decades. (I experienced this transition first hand in the computuer monitor business at IBM in the 1980s)

One factor is certainly regulation. One is the relative size/cost ratio, which is different in electronics and cars. However, another important factor is where the components come from. If the components (LCDs, CRTs, chips) are all produced in the far east anyway, then shipping cost of the finished product becomes less relevant.

Perhaps even more important is the fact that the growth markets for products is moving overseas (China, etc.). In that case, the shipping and tarriffs work against us.

Although I don't agree with the timing (5 years), I do agree that some day China may outsource manufacturing to the US in order to access our cheaper labor force.
DZED 12/5/2012 | 3:13:02 AM
re: Looking at M&A Aftermath "The answer is: stupid management."

probably equally divided between the above and the UAW.
Traditionally Detroit has made products which are:-

Low-tech
Unsustainable (3 ton trucks which do 10mpg)
Undesirable
Poor quality

Basically don't give customers what they want.
rjmcmahon 12/5/2012 | 3:13:01 AM
re: Looking at M&A Aftermath What do you call a company that has been 100% outsourced to India, including the CEO? Answer: an Indian company.

From an investor perspective it represents another ADR candidate. http://www.adr.com
rjmcmahon 12/5/2012 | 3:13:01 AM
re: Looking at M&A Aftermath Just to poke a little fun, I think Milwaukee, Minneapolis and Seattle are all North of Detroit. And eyeballing it, I think Boston is north of the southernmost parts of Canada. I am sure Buffalo and Rochester are.

Yeah, I got my trivia a bit confused. I think the trivia is related to Windsor being south of Detroit.
douggreen 12/5/2012 | 3:13:01 AM
re: Looking at M&A Aftermath >So the CEO function will be outsourced by default.
>So sweet..so sweet -- when this would be reality?

You guys remind me of the pilot in the movie "The right stuff". THe brand new test pilot walked into the bar and saw pictures of other test pilots on the wall. He then started to brag that some day his picture would be on that wall. What he didn't realize was that the pictures were those of the pilots who had died in crashes.

This is not a good sign. What do you call a company that has been 100% outsourced to India, including the CEO? Answer: an Indian company.
netwizard 12/5/2012 | 3:13:00 AM
re: Looking at M&A Aftermath Japan's already outsourcing manufacturing through the car manufacturing/assembly lines in the US. That would answer to atleast a portion of it. But the remaining consumer products fall into the cheaper manufacturing areas like China, Indonesia, Malaysia etc. and I think that would be the case until these countries stop pegging their currency against the dollar and let them float to reflect the actual strength of their own currency and also the inflation rates in their respective economies. Until that happens I do not see how the US could truly consider local manufacturing a viable alternative to the cheaper facilities abroad.
douggreen 12/5/2012 | 3:13:00 AM
re: Looking at M&A Aftermath OK, please excuse the typos on my previous post, I changed the sentences but did not re-edit...

Americans engineers=American engineers
understood=understand
Drean=Dream

As I have stated before, I am the product of the best that Alabama public schools had to offer in the 1960s and 1970s :)

rjmcmahon 12/5/2012 | 3:13:00 AM
re: Looking at M&A Aftermath We insist on solutions from our govenment that make us globally competitive but continue to sustain ever increasing gaps between our standard of living and the rest of the world.

I'm no economist, but I think standard of living gaps are supported by productivity levels and dollar hegemony. Control over energy seems to be strategic to both the above. An advanced communications infrastructure could help reduce our demands on energy and also increase productivity levels for a knowledge driven society. Our industry finding a way to help with that would be a good thing by my judgment.
douggreen 12/5/2012 | 3:13:00 AM
re: Looking at M&A Aftermath Desi,

You seem to be saying that startup_shutup is patriotic (to his home country, India), but he struggles with the tradeoffs between patriotism and his own standard of living. He doesn't always completely comprehend the interactions between policies that he sees as good for his country and their negative effects on him. In other words, he is a normal human being just like 99% of Americans living in this country.

Many Americans would argue that we need to keep engineerig jobs in the US because it is good for the country. How many Americans engineers are willing to say: "OK, I'll personally accept a lower salary to keep engineering jobs in the US." It's just not human nature.

People in our country don't understood that the historical drive to create an unsustainable standard of living (what some call the American Drean) is what is making the jobs go overseas. In a global economy, it just won't work any more. We insist on solutions from our govenment that make us globally competitive but continue to sustain ever increasing gaps between our standard of living and the rest of the world.
Don't get me wrong: It sounds wonderful to me as well. BUT IT IS NOT LOGICAL.

It's easier to see disjointed logic in the attitudes of people from other countries. It is really hard to see it in ourselves because we have been indoctrinated in it since our youth.

Perhaps startup_shutup is as you say partially blinded to the faults of his own culture...as are we.
desiEngineer 12/5/2012 | 3:13:00 AM
re: Looking at M&A Aftermath Doug: This is not a good sign. What do you call a company that has been 100% outsourced to India, including the CEO? Answer: an Indian company.

You got that right, Doug.

Well, to psychoanalyze start_shutup, the guy is basically an Indian who got burned in Silicon Valley, moved to some other part of the US (Phoenix?). He's not quite able to come to terms with leaving the US and going back home, but he's patriotic enough to think that jobs moving back to India is great. Distance has blinkered his eyes, so he imagines that back in India, folks are essentially honest - greed is primarily a Silicon Valley failing.

Flame away, s_s :-)

-desi
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