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From: Lynn Wheeler <lynn@garlic.com>
Newsgroups: alt.folklore.computers
Subject: Re: The joy of Engine-Cars
Date: Mon, 04 Nov 2024 03:21:05 -1000
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Lynn Wheeler <lynn@garlic.com> writes:
> The foreign makers determined at quotas set, they could sell as many
> higher end cars (with greater profits, which further reduced any
> downward pressure on US car prices and increased the US industry
> significant profits that they pocketed). At the time, car business was
> taking 7-8yrs to come out with new design (from initial to rolling off
> the line, usually two efforts in parallel offset 3-4yrs to simulate
> something new, more often), and the foreign makers cut their elapsed
> time in half to 3-4yrs (as part of completely different product).

a side effect of US makers able to significantly increase their car
prices (from 70s to the 80s) was that they far outstripped rise in wages
and they needed to move from 36m auto loans to 60m & 72m loans ... but
financial institutions wouldn't make 60m/72m loans w/o warrenties
matching life of the loan ... and US makers were forced to significantly
improve US auto quality otherwise the auto business was be loosing money
with warranty costs (more than offsetting the increase in profits from
the price increases).

-- 
virtualization experience starting Jan1968, online at home since Mar1970