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Or the other way of looking at it is
The company is unwilling to pay what it owes. They want Special Dispensation to make money and will go out of their way to screw as much as possible out of the system for their own benefit.
There was a Multi Million Pound Business in the UK back in the early days of the 20th Century who paid all of 14.30 TAX over a 50 year period. They used the same argument that not paying Tax allowed them to employ people and some idiot politicians accepted that stupid argument.
The reality was that all not paying any Tax did was make a few people very rich and did noting to support the country that they depended on for their profits. In defending them from the aggressors the Country that had been Robbed went broke and no one could understand why that happened.
In this case GE has taken it one step further and they have experience that Off Shoring isn't the solution but they have used it as the Big Stick to screw all Governments and Unions into accepting what is better for the company while drastically reducing costs. Personally I wouldn't be surprised if GE got Tax Breaks to move the Production Off Shore in the first place from both the US and the country that they where moving production to.
Bosch has done much the same thing and Off Shored their White Goods Production out of Germany and as a direct result they have cut prices charged for their finished product but at the same time have produced a range of goods that is unlikely to survive the warranty period and still be usable. Their Fridges have an issue with Coolant Lines inside the cabinet splitting and rendering the unit unrepairable.
So their costs have actually increased as they sell a unit and then before the warranty ends they have to replace it with a free one or give a refund. Very much like the Old Soviet idea of making things we don't need to make any spares or product improvements we just make more and use the excess production to replace the failed units that we built.
In the case of Fridges customers may buy on price initially but they soon learn that cheapest isn't necessarily best. I know quite a few people who bought cheap fridges who didn't survive the warranty and now have purchased the expensive ones from a different maker which where way too expensive when the originally purchased the unit only to now believe that they have got better value for their hard earned money. This would not be unnecessary if there where Sales People on the floor who where willing to do the right thing by their customers instead of relying on volume for their Commissions. As suggested above the reliance on Volume Production and sales is nothing more that a continuation of the Old Soviet Era methods of making more than should be necessary to cover the failures of the substandard product.
When any company starts believing that Price is the Be All and End All of their products they have failed and are in the process of dieing.
Col
There was a Multi Million Pound Business in the UK back in the early days of the 20th Century who paid all of 14.30 TAX over a 50 year period. They used the same argument that not paying Tax allowed them to employ people and some idiot politicians accepted that stupid argument.
The reality was that all not paying any Tax did was make a few people very rich and did noting to support the country that they depended on for their profits. In defending them from the aggressors the Country that had been Robbed went broke and no one could understand why that happened.
In this case GE has taken it one step further and they have experience that Off Shoring isn't the solution but they have used it as the Big Stick to screw all Governments and Unions into accepting what is better for the company while drastically reducing costs. Personally I wouldn't be surprised if GE got Tax Breaks to move the Production Off Shore in the first place from both the US and the country that they where moving production to.
Bosch has done much the same thing and Off Shored their White Goods Production out of Germany and as a direct result they have cut prices charged for their finished product but at the same time have produced a range of goods that is unlikely to survive the warranty period and still be usable. Their Fridges have an issue with Coolant Lines inside the cabinet splitting and rendering the unit unrepairable.
So their costs have actually increased as they sell a unit and then before the warranty ends they have to replace it with a free one or give a refund. Very much like the Old Soviet idea of making things we don't need to make any spares or product improvements we just make more and use the excess production to replace the failed units that we built.
In the case of Fridges customers may buy on price initially but they soon learn that cheapest isn't necessarily best. I know quite a few people who bought cheap fridges who didn't survive the warranty and now have purchased the expensive ones from a different maker which where way too expensive when the originally purchased the unit only to now believe that they have got better value for their hard earned money. This would not be unnecessary if there where Sales People on the floor who where willing to do the right thing by their customers instead of relying on volume for their Commissions. As suggested above the reliance on Volume Production and sales is nothing more that a continuation of the Old Soviet Era methods of making more than should be necessary to cover the failures of the substandard product.
When any company starts believing that Price is the Be All and End All of their products they have failed and are in the process of dieing.
Col
Moderator Posted by HAL 9000
Updated - 8th Dec
