Friday, January 29, 2010

Excuse to Halt Production?


With worldwide auto sales plunging almost 50% from peak, one has to wonder when Toyota powers-down assembly lines for their most popular vehicles.

My hunch:

The only pedal they want off the metal is massive overproduction.

Would you rather halt production for a strangely lengthy recall, or permanently cut auto prices 50%, inline with the rest of the retail market? I think Toyota choose the former; incompetent management gambling that this will blow over with their subprime-era prices intact. Pretty dumb, considering Japan has been in a horrible deflationary Depression for 20 years.

3 comments:

  1. Well, I still think the US still has a little influence over japan.

    I thought this could be a bone for the US auto makers as well. Or, perhaps toyota thinks this move would best serve the entire auto industry.

    I find it hard to believe that one of the best car makers in the world couldn't solve this problem before announcing a sales halt.

    Most suspicious indeed.

    ReplyDelete
  2. Ray LaHood says toyota owners should stop driving their cars...

    Sorry about that, but Ray didn't really mean it.

    WTF?

    ReplyDelete

The USA's political-economc system is best described as:

On Nov 2, 2010, I plan to vote (FOR or AGAINST) my incumbent congressman

 
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