Falling dollar pushes manufacturing out of Europe

Skybird · 12-09-09, 09:40 AM

http://www.spiegel.de/international/...665862,00.html

As usual, politicians say that this could not have been forseen years back.
Companies and investement interests know no national loyalty, and money does follow the sun around the globe for 24/7.

AVGWarhawk · 12-09-09, 09:47 AM

Hey, VW is also opening a factory in Tennesse.

Business is business Skybird. You understand surely.

Letum · 12-09-09, 10:58 AM

Excuse my ignorance, but if your looking for lower production costs; why
move from Europe to America?
There are far cheaper 2nd world countries with enough good
infrastructure to move to that will offer much cheaper manufacturing.

Torvald Von Mansee · 12-09-09, 11:12 AM

Quote:

Originally Posted by Letum

Excuse my ignorance, but if your looking for lower production costs; why
move from Europe to America?
There are far cheaper 2nd world countries with enough good
infrastructure to move to that will offer much cheaper manufacturing.

Well, I'm sure they did an exhaustive study as to why. I guess you'd have to ask them.

Skybird · 12-09-09, 11:14 AM

The market for several models from German car makers is america, that is especially true for certain models by Mercedes, VW and Porsche. Move the production to where the customer is - saves shipping.

Also, we have seen not really a flood but a slowly but constantly growing number of companies relocating from Asia back to Germany, for wages in those countries are not as low anymore as they once have been (especially true for china), and once low production costs additionally got put into relation by worse education standards of the workers, resulting in declines in production quality, again this is especially true for China.

Regarding China, German manufacturers with knowledge on inventions in new machinery have learned the hard way that they first sell away their products, than their knowledge, and then do not sell products anymore, for the Chinese now produce them themselves - with the once German knowledge. Maybe you took note of the row there is that the Chinese are trying to get patents of Western and German machinery - for free, and no licensing fees anymore. Behind the official curtains, it is a pretty big issue in German-Chinese relations.

Sources for the above content: economic programs on TV, occasional random findings in German newspapers. i do not skim economic news systematically, it bores me.

12-09-09, 11:23 AM

Ja. USA today, China, Mexico, or Guadamala tommorrow.
Just follow the cheap labor road.

12-09-09, 11:28 AM

Hmmm. Skybird just educated me as I wrote the last post.
That exlains why they didn't go to China.
Thanks for the info.

Skybird · 12-09-09, 11:34 AM

Yes, china tries to couple new "joint ventures" (often sooner or later under total chinese control with help of obstruse juristic allegations) with total neutralising of patents, saying they do not wish new joint ventures if they do not get all the patents for free. Their concept of "intellectual property" leaves much to be desired. Product piracy is what they still are best in. For Germany, excelling in car technology is an industrial key branch. We have understood that it is insane to help them boosting their own car production in quality. so far all their exports reaching the german market scored the worst notes in crash tests in all history of german crashtests, but they are cheap. To help them staying cheap but imporving their qulaity would be suicidal for the car business. Nevertheless, I think several german car akers, if not all, are present in Chian already, I am not sure. you cannot afford to ignore that market, unfortunately. It's too big. It's kind of a dilemma, me thinks.

12-09-09, 09:40 AM	#1
Skybird Soaring Join Date: Sep 2001 Location: the mental asylum named Germany Posts: 42,629 Downloads: 10 Uploads: 0	Falling dollar pushes manufacturing out of Europe http://www.spiegel.de/international/...665862,00.html As usual, politicians say that this could not have been forseen years back. Companies and investement interests know no national loyalty, and money does follow the sun around the globe for 24/7. __________________ If you feel nuts, consult an expert.

12-09-09, 09:47 AM	#2
AVGWarhawk Lucky Jack Join Date: Jun 2005 Location: In a 1954 Buick. Posts: 28,257 Downloads: 90 Uploads: 0	Hey, VW is also opening a factory in Tennesse. Business is business Skybird. You understand surely. __________________ “You're painfully alive in a drugged and dying culture.” ― Richard Yates, Revolutionary Road

12-09-09, 10:58 AM	#3
Letum Navy Seal Join Date: Feb 2005 Location: York - UK Posts: 6,079 Downloads: 43 Uploads: 0	Excuse my ignorance, but if your looking for lower production costs; why move from Europe to America? There are far cheaper 2nd world countries with enough good infrastructure to move to that will offer much cheaper manufacturing. __________________

12-09-09, 11:14 AM	#5
Skybird Soaring Join Date: Sep 2001 Location: the mental asylum named Germany Posts: 42,629 Downloads: 10 Uploads: 0	The market for several models from German car makers is america, that is especially true for certain models by Mercedes, VW and Porsche. Move the production to where the customer is - saves shipping. Also, we have seen not really a flood but a slowly but constantly growing number of companies relocating from Asia back to Germany, for wages in those countries are not as low anymore as they once have been (especially true for china), and once low production costs additionally got put into relation by worse education standards of the workers, resulting in declines in production quality, again this is especially true for China. Regarding China, German manufacturers with knowledge on inventions in new machinery have learned the hard way that they first sell away their products, than their knowledge, and then do not sell products anymore, for the Chinese now produce them themselves - with the once German knowledge. Maybe you took note of the row there is that the Chinese are trying to get patents of Western and German machinery - for free, and no licensing fees anymore. Behind the official curtains, it is a pretty big issue in German-Chinese relations. Sources for the above content: economic programs on TV, occasional random findings in German newspapers. i do not skim economic news systematically, it bores me. __________________ If you feel nuts, consult an expert.

12-09-09, 11:34 AM	#8
Skybird Soaring Join Date: Sep 2001 Location: the mental asylum named Germany Posts: 42,629 Downloads: 10 Uploads: 0	Yes, china tries to couple new "joint ventures" (often sooner or later under total chinese control with help of obstruse juristic allegations) with total neutralising of patents, saying they do not wish new joint ventures if they do not get all the patents for free. Their concept of "intellectual property" leaves much to be desired. Product piracy is what they still are best in. For Germany, excelling in car technology is an industrial key branch. We have understood that it is insane to help them boosting their own car production in quality. so far all their exports reaching the german market scored the worst notes in crash tests in all history of german crashtests, but they are cheap. To help them staying cheap but imporving their qulaity would be suicidal for the car business. Nevertheless, I think several german car akers, if not all, are present in Chian already, I am not sure. you cannot afford to ignore that market, unfortunately. It's too big. It's kind of a dilemma, me thinks. __________________ If you feel nuts, consult an expert.

12-09-09, 11:23 AM	#6
Snestorm Stowaway Posts: n/a Downloads: Uploads:	Ja. USA today, China, Mexico, or Guadamala tommorrow. Just follow the cheap labor road.

12-09-09, 11:28 AM	#7
Snestorm Stowaway Posts: n/a Downloads: Uploads:	Hmmm. Skybird just educated me as I wrote the last post. That exlains why they didn't go to China. Thanks for the info.