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German model is ruinous for Germany, and deadly for Europe
Topic Started: 10 Oct 2014, 06:29 AM (2,775 Views)
peter fraser
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Sober
11 Oct 2014, 09:43 AM
To be sure, the relatively compact geography and high population density of Germany as a whole is probably somewhat helpful at the margin. But if that was the key to economic success, Bangladesh (1091 people per sq km, #11 in world terms) would be an economic powerhouse, and the USA (32.45 people per sq km, #180) a backwater.
Yes but the comparisons to Australia fall down when you add in proximity to markets and hundreds of years of industrial production together with the market streams that the continuous production has cultivated. Producing items at a low cost is not enough. Marketing, quality, and competitive fast means of transport also have to be taken into consideration.

As for Bangladesh - what about education standards, ability to access finance at a low cost, Investment in the latest plant and equipment and technology. A cheap labour force is only one part of the story, and even they aren't as cheap as robots. Again quality, reputation and well established distribution channels make a huge difference.

If you were buying a small car which would you choose - a well made German built vehicle or one of THESE. Note that the balloons are an optional extra with the executive model.

What would your family rather drive down the M1 at 110Kph regardless of the savings in the sticker price.

It's not a strawman - if you dig up a book on historical and classic cars you will find pictures of Mercedes, BMW, and Auto Union everywhere and the reputations for quality and reliability has been built over 100 years matter.

You won't find any mention of a Sobari in the annals of Le Mans racing history.

Edited by peter fraser, 13 Oct 2014, 06:56 PM.
Any expressed market opinion is my own and is not to be taken as financial advice
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stinkbug
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peter fraser
13 Oct 2014, 06:54 PM


If you were buying a small car which would you choose - a well made German built vehicle or one of THESE.
LMAO!!!! :lol :lol :lol
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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