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Price pressure 2
It goes even further than this. Every one thinks that the Japanese car manufacterers big advantage is quality. As they are opening quite few US plants, it seems that they are essentially US manufacturers.
While their quality is one of their advantages, they have another that is probably as large. Their workforce is just being hired and they have no retirement benefits to worry about for years. GM and Ford have enormous disadvantages (and costs) in this area. I will admit that some of this problem is a direct result of their and the United Auto Workers actions, however, it is a problem that could affect all older companies and their workers.
I have no idea how to handle this, other than beefing up Goverment retirement such as has been done in Europe. I honestly do not know an answer for this one other than save all you can and hope that 1929 does not repeat.
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