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<blockquote data-quote="brownIEman" data-source="post: 792018" data-attributes="member: 14596"><p>That is one way to interpret what happened.</p><p>Another is that they continued to make the SUV's that were making the most profit because their cost structures required them to make the vehicles that were making them money. Toyota and others that had much lower cost structures could afford to re-tool plants and produce more fuel efficient cars, that while not making them as much money, and in some cases losing money, were likely to be in higher demand soon. </p><p>GM for one could not react to market forces fast enough, partly due to their cost structures. Like, their agreement with the UAW that when they did shut down a plant for retooling, or other reasons, they had to continue to pay the employees of the plant during the shut down. They were unable to react and reinvent themselves fast enough for a changing market. Partly due to items like having to continue to pay layoff employees, which was short sighted and stupid of GM to agree to and short sighted and stupid of the UAW to ask for.</p><p></p><p>How many UAW workers would be working if they had been making hybrids 5 years ago? Possibly even fewer, as Toyota would have cleaned their clocks in that market and they would have had to drain away what moneys they were actually making on the SUV's at the time to get into that market in the first place.</p></blockquote><p></p>
[QUOTE="brownIEman, post: 792018, member: 14596"] That is one way to interpret what happened. Another is that they continued to make the SUV's that were making the most profit because their cost structures required them to make the vehicles that were making them money. Toyota and others that had much lower cost structures could afford to re-tool plants and produce more fuel efficient cars, that while not making them as much money, and in some cases losing money, were likely to be in higher demand soon. GM for one could not react to market forces fast enough, partly due to their cost structures. Like, their agreement with the UAW that when they did shut down a plant for retooling, or other reasons, they had to continue to pay the employees of the plant during the shut down. They were unable to react and reinvent themselves fast enough for a changing market. Partly due to items like having to continue to pay layoff employees, which was short sighted and stupid of GM to agree to and short sighted and stupid of the UAW to ask for. How many UAW workers would be working if they had been making hybrids 5 years ago? Possibly even fewer, as Toyota would have cleaned their clocks in that market and they would have had to drain away what moneys they were actually making on the SUV's at the time to get into that market in the first place. [/QUOTE]
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