MercoPress. South Atlantic News Agency
Argentine auto-manufacturing boosts June and half year industrial production stats
Boosted by auto and metal-mechanic manufacturing industrial production in Argentina during June increased 3.8% compared to the same month a year ago, according to the latest release from Indec. Since April and May were also positive this means that the second quarter was up 3.5% over a year ago. Read full article
Comments
Disclaimer & comment rulesSugar shops!?
Jul 30th, 2013 - 04:59 am - Link - Report abuse 0That will make Argentinians even more sleepy,viva siesta
With high import duty and taxes placed on any imported vehicle plus the poor exchange rate between the peso and dollar and low wages the argentines can only afford to buy cars made in argentina, so an increase in domestic sales would be the result.
Jul 30th, 2013 - 07:01 am - Link - Report abuse 0And what happens when they leave?
Jul 30th, 2013 - 08:20 am - Link - Report abuse 0Currency controls, unstable fuel supply, import restrictions etc etc etc
My guess is they'll be packing up sooner than later
Probably waiting to see the outcome of Oct elections and the massive devaluation afterwards.
Wow-they can actually build cars! I am impressed.
Jul 30th, 2013 - 09:49 am - Link - Report abuse 0Any of those cutting edge Pampers rolled off the production line yet?
Pampero flown yet?
What will be the next aircraft Argentina makes that is called after babies diapers?
The increase in car sales is due to the “dollar clamp”, it is a fairly decent investment to buy a new car, as they tend to keep close to their original value!!!!!!
Jul 30th, 2013 - 10:04 am - Link - Report abuse 0Argentina is the only country in the world where used cars, appliances etc go up in value! ( Pesos that is, so not in real terms)
Jul 30th, 2013 - 10:13 am - Link - Report abuse 0Yankeedick predictions doing very well :-)))))))))))))))))))))))))))
Jul 30th, 2013 - 11:19 am - Link - Report abuse 0Marcos, Can you explain why Milk is higher in Argentina than in the USA?
Jul 30th, 2013 - 11:24 am - Link - Report abuse 0And do you think there's any correlation to the auto industry?
That's a strange concept Simon. Something that moves and wears is a depreciable asset in the rest of the world. But as you say there is no place else to put money to escape the inflation.
Jul 30th, 2013 - 11:48 am - Link - Report abuse 0Congrats Yankee, every time a troll is flummoxed, they respond in kind with a name distortion to counter valid points. Interesting, if not juvenile arguing technique. Apparently they feel they need to come back with something when they have nothing.
“according to the latest release from INDEC”
Jul 30th, 2013 - 01:37 pm - Link - Report abuse 0Enough said.
I am sure all the Brits & Co will remember The Bitter And Twisted Old Twat Of Chew Butt calling me a “Turnip” when I questioned the last sets of percentages from INDEC. It is, after all, a very convenient way to blinker the real truth from the low numeracy argies. BUT, we now have the actual INDEC figures to examine.
Jul 30th, 2013 - 05:08 pm - Link - Report abuse 0Guess what the REAL improvement is from the last time the production was used as a base for the two percentages shown above: 2.27 PERCENT. That’s it folks, the argies have worked TWO years to get a 2.27% increase in UNITS produced, not funny money earned.
I bet that has REALLY impressed GM, Renault, VW, Citroen, etc. Imagine the millions of dollars (real money) tied up in their production plants and WIP, ALL FOR 1.13% RISE PER YEAR averaged over the two years in units made.
I am staggered they even bother; they could get more from the capital invested on deposit.
When you consider the USD BILLIONS locked into The Dark Country because of TMBOA ‘model’, if I were a Regional General Manager I would strongly recommend to the board to ‘get the hell out of Dodge’, even if we had to set fire to everything to stop the crooks from profiting.
LMAO, piss-up and brewery doesn’t even come close.
@11 Chris good point.
Jul 30th, 2013 - 06:21 pm - Link - Report abuse 0According to INDEC unemployment is lower this month!
Jul 31st, 2013 - 10:13 am - Link - Report abuse 0hahaha
They inaugurated another washing machine mfg. WTF do they need more of them for? Rg washington machines catch fire! Everyone knows this plus they cost more than in the USA!
Something is really wrong with these people
52% of teenagers can't read at an acceptable level and 64% won't graduate on time or maybe ever.
Explains a lot
U$11MM Cendins bought this month U$ 4B was anticipated.
I thought that was supposed to save the economy
I guess not
Another spectacular CFK/Marxist failure.
I can't wait until the car mfg pull out it can't be long now
13 yankeeboy
Jul 31st, 2013 - 11:39 am - Link - Report abuse 0I would imagine there is a concert party going on right now with all the major auto manufacturers as to the best way they can move out without losing the USD Bns they collectively must have in The Dark Country. There must be a way, surely.
I think the fixed hardware would have to be abandoned but I hope they torch through the frames or whatever structural part they can destroy before the management leave, and as for paying the taxes and the workforce 18 months money: ha, ha, ha.
Cars are their 2nd biggest export revenue and the largest employer in BA province.
Jul 31st, 2013 - 12:15 pm - Link - Report abuse 0It would be catastrophic if they all packed up and left at the same time.
and I will laugh
Just a weeee bit expensive to do that yankee.
Jul 31st, 2013 - 12:37 pm - Link - Report abuse 0And a bit unwise too.
Who's going to buy the plant ? Dedicated auto manufacturing plant. Employees available, experienced, trained and ready to go.
Market research kindly done, fresh stock managers looking for employment.
A profitable business, with a now exclusive market, kind of easy to market too - the prior mark now having become just a little bit unpopular.
New drivers will need new cars, and theres many names.
Basically you'd lose out more than Argentina, which would quickly bring in a competitor.
16. They can easily increase production in Mexico or Brazil and let the plants sit idle.
Jul 31st, 2013 - 12:41 pm - Link - Report abuse 0Profit is only worthwhile if you can use it. It is trapped in the banks by decree with no end in sight.
There is no reason to mfg in Argentina when other LA countries would PAY them to move production there.
Look to Cuba Vestige, look to Cuba and you'll see the future of Argentina.
@15
Jul 31st, 2013 - 12:43 pm - Link - Report abuse 0Also laugh at 4 in 5 Americans living in poverty for a substantial part of their lives?
Also laugh at 3 train crashes in with dead in Europe in two weeks time?
4-5 poverty multiple train wrecks... EU/USA worse than Argentina, just by the raw numbers.
Either you don't care about your own countrymen and fellow first worlders (bad), or you glee at any opportunity the Argentines face hardship (really bad).
Either way...
http://www.youtube.com/watch?v=XfXGGbGfHn4
No one believes the EU/USA superiority apocrypha any longer. Sort out your problems with train crashes, falling bridges, failing dams, and poverty and unemployment, then come back to me.
Toby, I am happy posting about Argentina.
Jul 31st, 2013 - 12:49 pm - Link - Report abuse 0There is just so much self inflicted wounds there it is astonishing the people aren't in mass revolt!
Is it because they are stupid, lazy or scared?
BTW I saw milk in Argentina is more expensive than in the USA. That's odd how do you think that happened?
16 Vestige
Jul 31st, 2013 - 12:56 pm - Link - Report abuse 0You have never operated a business in The Dark Country have you?
And you most certainly have never been involved in a large business in the USA or the UK.
“I think the fixed hardware would have to be abandoned but I hope they torch through the frames or whatever structural part they can destroy before the management leave, and as for paying the taxes and the workforce 18 months money: ha, ha, ha.”
That would take care of the fixed assets; they would be unusable to any other car maker, though apart from the Chin, I seriously doubt any other creditable auto maker would even think about The Dark Country. It would also take care of the tax liability and prevent TMBOA taking her share.
You overlook that automakers do not take kindly to countries holding them to ransom and if it were agreed collectively to leave, then leave they would and write down any further losses over what they are presently making via the corporate accounts as a “special case”.
Make no mistake, automakers do not make vast profits as TMBOA seems to think when compared to the capital employed and when that capital is threatened the group HQ WILL take the required action.
I have personally been involved in an action like this in another industry and whilst you suffer losses it does enable the parent company to make a review of ALL operations world-wide and give itself a new start under controlled circumstances. THEY would be in charge NOT TMBOA, and you could say that was priceless.
CFK is stupid enough to think like Vestige, the world is littered with abandoned factories due solely to bad governments.
Jul 31st, 2013 - 01:02 pm - Link - Report abuse 0Factories are cheap to build and usually the new country they're being built in pays for a lot of the costs to get the jobs and tax revenue.
Business want it to be easy, cheap and consistent and one of that can be found in Argentina under the Ks.
Shouldn't be too much longer now.
Btw.... what is a Washington machine?
Jul 31st, 2013 - 01:05 pm - Link - Report abuse 0It makes Washingtons
Jul 31st, 2013 - 01:09 pm - Link - Report abuse 0Unprecedented mass movement and dilution overnight along with arson, lol ...love it.... forgetting contracts and trade agreements both inside and outside mercosur (which in return will publicly azz fk your brand hard). And third party contracts too.
Jul 31st, 2013 - 02:09 pm - Link - Report abuse 0Completely ignoring European and Asian alternatives and worldwide holdings in these companies which are going to disappear all of a sudden.
Who are the executive holders in these companies and what nationality, are they okay with this time/money consuming switch. The share price might take a weee hit too.
Is there a fresh plant waiting and ready to go with suitable infrastructure and planning agreements and all legal aspects tied up and a suitable local workforce, suitable supply of raw materials, oh and a market would be good, ideally one with few competitors.
Well in this situation there would certainly be a market in Argentina for cars, one with no competitors, although it may be cheaper to locate there rather than transport.
Lets hope our previously proven almost turnkey set up with a history of success isn't occupied by one of our many Asian or European or Japanese competitors on return.
Oh look, an almost identical version is being built using the same plant and 99.999% identical plans by a new Argentine setup.
Vestige, You are delusional, you think you could build replicas and sell them to whom? Who the fck would buy an Rg engineered car?
Jul 31st, 2013 - 02:57 pm - Link - Report abuse 0You can't make a washing machine without it catching on fire!
You're nuts.
As I said in another post Mexico, Brazil and the USA can easily increase production without problems. Argentina's car production is but a small % of cars produced worldwide. Nobody needs to mfg there to have an effect on their bottom line.
The Mfg have the upper hand not the Arg Gov't.
Use Vale as an example, how many U$ Billions did they walk away from just to get out while the getting was good?
The 1st of many I suspect.
The mass exodus, which has been limited only by leftist President Cristina Fernandez's capital controls, is threatening to undermine Latin America's No. 3 economy even further by leaving it short of hard currency and new jobs.
Jul 31st, 2013 - 03:42 pm - Link - Report abuse 0Read more: http://www.businessinsider.com/investors-are-leaving-argentina-2013-6#ixzz2aeb6TNB4
I really need to take a peek at Ford's reserves for the impending disaster in Argentina.
I think it is really funny that an Rg thinks they can copy a car and then turn around and sell it.
Jul 31st, 2013 - 03:58 pm - Link - Report abuse 0How dumb are these people?
Well we have a factory, that used to make cars...duhh
It made my day!
24 Vestige
Jul 31st, 2013 - 04:56 pm - Link - Report abuse 0Just to educate you on industrial production and third party contracts:
1) the tooling to produce the pressings can be removed very easily: it’s designed that way to cut down the standing time during tool changes AND, guess what? These tools weigh upwards of two tonnes but can easily be removed in lorries and boats to anywhere in the world.
2) all the imported parts for these cars can be switched with an email to anywhere else they set up a car production LINE, anywhere in the world. These major players always have room to tuck a line in because the plants are always designed that way, it gives flexibility. ALL the existing suppliers (except those in The Dark Country) will retain the contract because the parts are used on a lot of different cars;
3) the executives already have teams of trouble shooters that are used to solve problems in switching production, so no problem there;
4) YES, the share price will move, UPWARDS! If I were a shareholder I would be pleased that my management had the foresight to see the tricks that TMBOA gets up to. SO, do you really think any major company will GAF about walking away from any contract which has already been voided by TMBOA freezing their money in The Dark Country?
5) finally, have you ever driven one of the Chin made cars? I don’t think you have. I drove one for 4 days, a brand new one with only 600 km on it from Carrasco car hire. It not only couldn’t pull the skin of a rice pudding, bits started to drop off it. As my wife said when we dropped it off, “it we had it a day longer we would have to have brought it back in a box”!
6) if ever evidence were needed of your complete lack of knowledge about production matters your final sentence provides it in spades.
I am so pleased you are a closet argie, with help from the likes of you the end will be sooner rather than later.
I think its really funny that yankee thinks a company can up and leave when it wants.
Jul 31st, 2013 - 06:10 pm - Link - Report abuse 0I think its really funny that yankee thinks a company can even have quick accord between its many owners to up and leave.
And then find another latam country to take Args production... just like that.
....and ever sell to Arg's 40+ million market again.
Best of luck.
I really shouldn't be here.
Of course companies can decide not to manufacture their products.
Jul 31st, 2013 - 06:34 pm - Link - Report abuse 0Are they being held hostage?
Do you think not letting them sell in the future would prevent them from leaving in the present?
You are really pretty stupid.
Are they being held hostage. Yes. Its called wage contracts.
Jul 31st, 2013 - 07:26 pm - Link - Report abuse 0Countries don't just let you walk in and set up a sweat shop manufacturing explosives beside a hospital you know. Theres things called stipulations.
Like minimum production or minimum wage or source contracts.
Prospect of not selling into a 40 million market prevent leaving. Yes. Its called industrial competition. And an auto company losing latams 3rd largest economy is likely to perish.
I get the feeling that you were somehow on the receiving end of Argentina's default. Perhaps it cost you some money. You've been on the site a long time, and your anger hasn't ever ceased. It seems to be something personal.
Vale shut up shop and walked away from its investment and losses.
Jul 31st, 2013 - 08:18 pm - Link - Report abuse 0Sealord shut up shop and walked away from its investment and losses.
So much for Vestige's claim that everyone wants part of a 40 million person pie with shrinking income.
Once the cost outweighs the benefit, businesses will go. Losses will be tolerated only so long and mothballing a plant is easier and cheaper than running at a continual loss.
Should the government try to take over a mothballed plant by nationalising it then then look how well that has worked so far.
Two cases with their own unique set of circumstances. How many decided against walking away can't be known.
Jul 31st, 2013 - 09:23 pm - Link - Report abuse 0So you give two cases and state the simple and obvious that “Once the cost outweighs the benefit, businesses will go”. Although this simple rule isn't always the case.
Should a company not hold to its promises and leave while breaking contract don't be surprised if the costs are put against its local assets. Thats what happens in most places.
Auto industry doing quite well so your simple and flawed cost benefit rule doesn't apply.
Vestige
Aug 01st, 2013 - 05:40 am - Link - Report abuse 0Who said nothing about breaking a contract? Mothballing a plant and retrenching your workers is totally legal.
“Once the cost outweighs the benefit, businesses will go”. Although this simple rule isn't always the case.
Yes it is.
Unless it is a government run business, no business operates to LOSE money. Unless they are using the business as a tax right off, which means they have an extremely profitable company operating within the same country.
Why would a company continue to operate at a loss?
As for Argentina's consumer boom; well of course it is having one. With 30% inflation what else are the masses going to do with their income.
They can't save it!
They can't convert it into another more stable currency!
So the SPEND IT. As quick as they can. Because next week it is worth less.
What you fail to realise is that this consumer boom which is helping the auto industry do so well is actually stealing future growth. People don't keep buying new cars every year. Maybe every 5 or 10 years. So they are bringing their purchase forward. Also by failing to save, the population is spending their future spending now.
They have bought forward their consumption.
And that is a very very bad thing.
Vestige, like your lithium soaked Prez you know nothing of business nor have a rational thought in your head and will be shocked beyond repair when these car companies pull out.
Aug 01st, 2013 - 08:16 am - Link - Report abuse 0Regardless of contracts or asset seizures sometimes it is cheaper to walk away and let the Embassy work it out.
They have to be very near to doing just that.
A lot of digression and supposition going on here.
Aug 01st, 2013 - 08:43 am - Link - Report abuse 0But Ill try to keep it on the topic.
Mothballing a plant is indeed legal ...at times under the right terms. Such as their outlook being unsustainable. (after the govt's slice)
Companies of scale must give certain guarantees if they are to set up and sell in a country. A govt will often purpose build infrastructure such as roads in line with the corps needs, allocate land, even give incentives. Space in govt developed industrial parks is usually allocated to the best cases...so you don't have 'broke co' taking up a space that could have been held by 'diamond co'.
In large scale business such as the auto industry there are often political trade arrangements (we'll send our pharma co, if you take our electronics) .
All of this makes leaving at any time as a process rather than a decision. Mothballing normally takes place -after- the govt gets its foreseen slice. The books are looked at, the company's future examined, hopefully theres a case to keep the govt happy and still operate.
For international corps leaving costs are drawn down to their head office. Simply because govt's don't invest in the infrastructure necessary without taking precautions.
In the case of ' all companies leaving at once haw haw haw' etc, the cost would have to be payed before leaving.....if it wasn't....they compromise the entire corp, breach laws, and they'll find their operating costs in other, now very cautious, countries shoot up overnight, and have a hard time finding a new home. Also; you'll find that the pharma-electronics deal is now broken and jobs at home are being lost.
Now then, the operating at loss thing.
I dont have space but heres a few.
1. Assets held may increase in value over time. (e.g land)
2. A subsid may take the hit and stay to stop a rival entering.
3. Legislation/tax changes may be expected.
4. There may be the potential for a new market (consumer age).
5. New suppliers arriving.
6. Growing economy
7.8.9-101
Vestige, I think you're too stupid to understand what Anglotino and I are saying.
Aug 01st, 2013 - 09:37 am - Link - Report abuse 0I think my time can be better spent trying to teach my cat to speak French.
You are a lost cause and the reason your economy has failed every decade for the last 3 generations.
Bad gene pool is my guess.
Comment removed by the editor.
Aug 01st, 2013 - 09:50 am - Link - Report abuse 0We've countered your arguments but you keep re-posting delusional crap.
Aug 01st, 2013 - 10:00 am - Link - Report abuse 0V A L E is the most recent example of a BIG Company TAKING AN HUGE write off to get out of that horrible place at any cost.
It is not a unique situation as you claim. It is smart business.
I'll ask my cat what that says she's catches on heck of a lot quicker than you do.
36 Vestige
Aug 01st, 2013 - 12:46 pm - Link - Report abuse 0You assume much in your posts, I KNOW because I have been in a similar situation as I said previously.
Most, if not all, of The Dark Country’s auto plants have been there since you were a sperm.
The so called government they are dealing with now is out to extract the most money it can because it is a busted flush. This government has broken many contracts and cannot be trusted to run a piss up in a brewery.
I know this is probably totally beyond you but really big corporations only think of THE BOTTOM LINE BECAUSE THAT IS WHAT PAYS OUT THE DIVIDENDS.
Shareholders who are upset may sell and then the share price can drop and that reduces the money that banks will loan it for operational needs, which may mean the company has to sell assets to cover the loans: in other words the company is dying.
Do you really think these boards of directors are even going to think about the argie government threats if there is even a CHANCE that this would happen and the screaming from TMBOA and Moreno waving his revolver around, is going to impress anybody.
VALE did not even pay the 18 month kick back to the “workers”, they just walked and wrote off the USD 6 Bn as “experience” I would imagine.
Will VALE be back, will Repsol be back? NFW!
Now just accept that you are ignorant of this level of business, we can all understand that and it will stop you making yourself look a complete idiot.
“Global miner Vale SA signed ....an agreement with the Argentine government... on Friday that will allow the Brazilian company to leave ...”
Aug 01st, 2013 - 01:37 pm - Link - Report abuse 0You see they didn't just FO overnight, because they would get stung hard if they did. One can only suppose because there was some kind of arbitrator fund or international trade body in place. Or they may have been paying in advance.
No they won't be back, although they do still hold some rights there for a few years iirc. They left (on agreement) because of inflation and currency related issues. (that'll help in time). But they were kind enough to invest in infrastructure while there.
And the goods are still there to be mined. :)
Repsol screwed around and got the expropriation. Rightly so.
Chevron then quickly presented a plan to invest $1.5 billion in the fields.
Again the goods are still there.
Now allow me to correct your post.
big corporations only think of THE BOTTOM LINE BECAUSE THAT IS WHAT PAYS OUT THE DIVIDENDS.....that is why they think to the medium term in most cases and dont take arbitrary short term decisions and are rather cynical to change when making a profit as they like to stay as long as possible which is quite long in the case of Argentina in sperm terms.
Now you might like to think pulling out of Argentina could be used as a diplomatic tool.......the multinational executives and board and holders don't. Mr Shendagzu and Mr Ahmed and Mr Goldstein and Mrs Viedenbaum and their respective multi million euro accounting firms sitting at the table will not like that. Nor will the Argentine government.
.....although competitors will.
Thank you for your insults. Please hate on me some more.
41 Vestige
Aug 01st, 2013 - 03:18 pm - Link - Report abuse 0Keep deluding yourself if that is what keeps you happy.
It's that same problem with every RG, no matter how many times someone tells them they are wrong, explains in detail why they are wrong they just can't admit it.
Aug 01st, 2013 - 03:36 pm - Link - Report abuse 0Is everyone on lithium there?
Do they all have swiss cheese brains?
I think all we are left with is the La Campora idiots on this board.
“Repsol screwed around and got the expropriation. Rightly so.
Aug 01st, 2013 - 08:09 pm - Link - Report abuse 0Chevron then quickly presented a plan to invest $1.5 billion in the fields.
Again the goods are still there.”
Between this:
http://www.buenosairesherald.com/article/137454/opposition-files-injunction-against-ypfchevron-agreement
And Repsol's legal action against Chevron, we'll see how long Chevron stays in Argentina. And BTW, land.......does not appreciate on the books, it a GAAP thing, maybe at times a footnote.
Well played, you've found 1 (debatable) niche in all my posts.
Aug 01st, 2013 - 08:48 pm - Link - Report abuse 0Now you can try 2.3.4.5 and 6.
In the meantime you can replace it with - There may be a strong case for govt assistance or a favorable re-arrangement of debt.
Supposition on Repsol/Chevron.... we'll see ...we'll see...yadda yadda.
You're on the side arguing for possible spontaneous, consequence free simultaneous closing of a full market by multiple internationally owned companies based on political desires of one country alone, motivated by malice under the expectation that competitors won't enter and take up the same spot, in this case a 40+million market in a trade bloc.
Do you want to associate yourself with such propositions.
No really...do you ?
#2 is a 50/50
Aug 02nd, 2013 - 05:17 am - Link - Report abuse 0#3 is nothing more than hoping
#4 That's called business development and the is always in progress, so it is known
#5 Not in Argentina where imports are restricted to near zero
#6Not in Argentina.....private enterprise may not prublish their data for fines, but they certainly use their own in Argentina and not Indec's
7,8,9,-101 Short term losses are always mitigated by preventing ongoing long term losses.
Many foreign businesses already have pages of notations on their audited financials with regard to money trapped in Argentina future trends in inflation and the impact on these locked funds.
Just type 'operating despite loss' into Google. That is all.
Aug 02nd, 2013 - 06:03 am - Link - Report abuse 0Vestige you remind me a lot of Toby, posting hopes and dreams only to see them shattered 6 months later when reality strikes home.
Aug 02nd, 2013 - 06:11 am - Link - Report abuse 0I've been pretty good at telling everyone what I think will happen a year or two down the road.
I can say with confidence that if drastic changes in the economy don't happen soon the car companies and other large Intl MFG will leave, 40M people or no.
Would we like to take a little bet Mr Yankee.
Aug 02nd, 2013 - 06:32 am - Link - Report abuse 0What would be the point? My posts are here for all to read, take them or leave them.
Aug 02nd, 2013 - 07:26 am - Link - Report abuse 0I've been saying FOR A VERY LONG TIME buy sugar & laundry detergent I think since I've been saying it they've both gone up 600% in peso terms. My advice is to hold them because Hyperinflation in on its way and you'll need to trade them for food or fuel.
Vestige, why don't you try to explain to me why Milk costs more in BA than in the USA. Come on, go for it!
Wait let me guess its the oligarchies right? Am I right?
bahahahaha
49 Vestige
Aug 02nd, 2013 - 07:58 am - Link - Report abuse 0Operating in a loss!
Oh yeah, all sensible people do that on established businesses, no wonder you spout idiotic nonsense.
51. Maybe they make up the loss per item with volume?
Aug 02nd, 2013 - 08:18 am - Link - Report abuse 0hahahaha
Think about this, there is not one well known Rg brand, not one well known Rg multinational, not one well known RG consumer product AND every single large company in Arg is foreign owned!
HTF would this idiot Vestige know anything about how a business is supposed to be run?
52 yankeeboy
Aug 02nd, 2013 - 09:26 am - Link - Report abuse 0Vestige has the same idiotic approach to business as the old BLMC management that ran the “Austin, Morris, Wolseley and Riley” brands in the UK Midlands.
When the original mini came out it went down a bomb and sold thousands in the first few weeks.
Then came the little bombshell: they were losing £5 for every one that left the factory (worth about £150 today). This wasn’t because engineering had screwed up and had over engineered it or whatever, they had MISS-PRICED the works cost! Talk about idiots, they were the laughing stock of the auto industry.
These clowns would have had a great career in The Dark Country.
They only have 2 exports worth talking about grain and cars. It looks like both are in jeopardy due solely to terrible gov't policies.
Aug 02nd, 2013 - 09:34 am - Link - Report abuse 0Once you destroy an industry it takes a very long long (if ever) time to rebuild it.
I expect this “won decade” will take a generation (maybe 2) to rebuild AND only if they get a good gov't after this monstrosity. The odds are they'll get one even worse.
Vestige......companies with often operate at a loss in the initial stages of new endeavors under the assumption the the losses will be overcome after the initial investment phase and moves to the development phase. Big pharma does that all the time. You may be a great socialist and communist, but an industrialist or business manager you are not.
Aug 02nd, 2013 - 10:49 am - Link - Report abuse 0Thank you captain for partly restating what Ive been trying to show certain people in here.
Aug 02nd, 2013 - 01:07 pm - Link - Report abuse 0Well children... I guess what we've all learned today is that companies don't just depart on a whim or on seeing a short term loss, or losses in the mid term sometimes. And that the vale agreement is a good example that leaving overnight isn't normally an option....in fact it may destroy a company. Til next time stay safe and dont eat paste.
ps. Yankee. Of the auto manufacturers in Argentina, only about 20% are American based. Also, please see the following
https://en.wikipedia.org/wiki/List_of_automobile_manufacturers
Page doesn't contain Chinese manufacturers so heres a few listed.
SAIC Motor
Dongfeng Motor
First Automobile Works
Chang'an Motors
Beijing Automotive Group
Guangzhou Automobile
Chery
BYD Automobile.
So ok ... let all the present manufacturers magically disappear overnight.
Next!
56 Vestige
Aug 02nd, 2013 - 01:40 pm - Link - Report abuse 0Chinese manufacturers make cars by copying those from the west, primarily those designed by European makers because the USA does not make many small cars.
I have to admit that they look good. BUT (and there is always a but in automotive manufacture) the copies are not engineered correctly and parts fall off and fail very early in the life of the car (I know that from personal experience) AND when you try and get a replacement part, you CANNOT, they are simply not supported by the factory.
It seems to me that the factory is so highly focussed on making the car they forgot to allow for wear and tear, design cock-ups and the length of the supply line to the abandoned customer. Now the last one surprises me when you think of the size of China.
Now it is no use saying the Chinese cars will always be of poor value (even though they are cheap, they are valueless in resale, even in Uruguay) because they will HAVE to get better as the Japanese did. But therein lies the rub: it will cost more and by then their reputation will be for producing tat.
AND of course the poor bastards will be in The Dark Country and subject to the whims of TMBOA and Moreno’s revolver.
BTW try to absorb facts and text instead of speed reading: see 51 ChrisR:
“Oh yeah, all sensible people do that on ESTABLISHED BUSINESSES, no wonder you spout idiotic nonsense.”
Start up businesses ALWAYS make a loss if the management know how to profit from the tax system which quite rightly allows time to take tax breaks on new ventures.
I was correct about your dad funding you though wasn’t I; you have never had a job or responsibility for the livelihood of others, have you? Keep reading Wikipedia and Google, which will REALLY give you the experience you lack: NOT.
You missed the fact that there is no long term profit to mitigate initial losses in Argentina. One cannot even move profits out of Argentina to bay back the investors unless they are Chevron. Why would someone invest in a foreign country, in this case Argentina, if the returns, (wealth) is only retained in that foreign country?
Aug 02nd, 2013 - 02:30 pm - Link - Report abuse 0Good day to you gentlemen.
Aug 02nd, 2013 - 03:31 pm - Link - Report abuse 0WTF said the factories would pack up and leave in a day? Not me.
Aug 02nd, 2013 - 03:49 pm - Link - Report abuse 0I am sure it will be an orderly withdrawal
but a withdrawal nonetheless
and sooner rather than later
59 Vestige
Aug 02nd, 2013 - 05:24 pm - Link - Report abuse 0So my final paragraph was about spot on then, I thought so.
Soy is at U$489, with the rising U$ and abundant supply from Brazil and USA, I bet a lot of Rg farmers are re-thinking their crops for next year.
Aug 03rd, 2013 - 07:44 am - Link - Report abuse 0BCRA built up no reserves this season, the only time of the year when they have the opportunity to increase the reserves.
Rut Ro
Winter isn't over yet and their U$ are going out faster than they are coming in
What happens when there just isn't enough U$ to buy fuel?
@61
Aug 04th, 2013 - 09:03 pm - Link - Report abuse 0Oh absolutely, I'm amazed, how did you deduce these facts.
Do tell, which specific details led to which specific conclusions, and what logic joined the two in each case.
With soy free falling(can't wait to see today's open), on a brighter note, I heaar Ford is re-tolling for a Green Ford Falcon in Argentina.
Aug 05th, 2013 - 05:34 am - Link - Report abuse 064 Captain Poppy
Aug 05th, 2013 - 07:09 am - Link - Report abuse 0What's a Green Ford Falcon?
Is it made out of soy before it has turned beige?
Ford of course has been in The Dark Country since forever and the mother of my next door neighbour used to be the Company Secretary. They still have a running Ford B with drop top, 1932 I think it is.
Perhaps the management think this will cut some ice with TMBOA, ha, ha, ha.
The Junta use to pick up “selected” individuals in Green Falcons.......only never to be seen again....the infamous one way flight over the Rio de la Plata. But, they where accused communist Montoneros so it's not real human rights abuse.
Aug 05th, 2013 - 10:11 am - Link - Report abuse 066 Captain Poppy
Aug 05th, 2013 - 12:25 pm - Link - Report abuse 0I wasn't aware of that, I bet FF sales dropped when the flights were on.
That's why they want to indict former Ford Exec's. Asslips is always on the ball to go after these clever 95 year old human rights criminals and put them behind bars for the rest of their life.......what, two months?
Aug 05th, 2013 - 03:29 pm - Link - Report abuse 0No response from ChrisR - leads me to believe he speaks from his tailpipe.
Aug 07th, 2013 - 06:21 pm - Link - Report abuse 069 Vestige
Aug 08th, 2013 - 08:09 am - Link - Report abuse 0You are a typical argie who never answers a question about themselves.
So, prove me wrong!
Who are you, where do you live, what jobs have you had, have you ever been a director of an international business, have you ever run your own businesses and what are you doing now.
I have answerted all these questions in the past and unlike argies I don't lie.
Over to you.
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