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Author: Tyler Kaelin

Spreading out for a little elbow room

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Out of everything we have learned in this class, what has had the greatest impact on me personally is the realization of the importance of being globally diverse. From various national economies taking downward turns, to devastating tsunamis, I have learned that if you aren’t spread out, you are taking a major risk.

In an increasingly interdependent world it is important to not only seek profit globally, but to spread risk globally. Metelsa is an excellent example, expanding to Russia and Vietnam. A slow down in the North American industry would hurt, but not totally devastate the company like a company with “all of its eggs in one basket.”

Nice Paint or Nice Airbags, Your Call

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Safety, what is it worth? As an OEM you obviously have to produce a car to a safety standard that will allow it onto the road legally. But, how much should you invest in producing a safe car? Engineering hours aren’t cheap, and making a safe car takes lots and lots of them.

       The new Subaru Forester is the first of around 13 vehicles to get a “good” rating on new, more stringent, IHSA safety test. One has to wonder though, for Subaru, was it worth it? How many fewer cars would Subaru sell with a “4 star” rating vs a “5 star” rating?

Decisions like these are faced by automakers every day. Quality, in any area, is not cheap. What people see and touch is often prioritized above what is underneath. For example, would you rather buy a “5 star” safe car with paint that will people would bet it’s the latter. l after 2-3 years, or a “4 star” car with flawless, show quality, paint. For most people, Automakers make decisions like this, although maybe not to this exact level.

If You Pay For It, You Can Have It Your Way

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No doubt about it, China is HOT. Cars are being designed with the emerging market in mind. But are they being marketed there effectively? The…

And You Thought There Was A Markup On Popcorn?

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Mini does something very well that makes a lot of other automakers very, very jealous. Mini sells more accessories and features then anyone else in the industry. Little customization options offered by Mini are a cash cow for the company. Those 300 dollar racing stripes cost next to nothing to produce or apply. With ever shrinking margins a strategy like this makes more and more sense.

Dodge has seen this, and they want in. The new Dodge Dart is about to get a whole host of new packages and options. Want new wheels and badges? That will be $400 please. Hopefully, the additional revenue from these packages and options will help Chrysler make a greater profit on its slow starting (sales wise) Dart.

Place Your Bets

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What gives a companies stock more value, history and size or a lot of raw potential? For the analysts on Wall Street, the answer is…

Subsidize this!

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Quick, think back to econ 101. How can you deal with negative extranalitites? Quotas and pigovian taxes (gas guzzler tax’s for example), right? Sure, those…

What is an assembly plant worth?

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As a native Kentuckian, I am very excited about the new Lexus ES350 plant to be built in Kentucky. However, I find myself wondering if…

It’s gonna cost ya!

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Carlos Goshen wants market share and he wants it bad. Despite a just announced net revenue of over 4.1 Billion in its past Fiscal year,…

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One of the most noticeable changes to the automobile in recent years is the in-dash entertainment system. BMW has iDrive, Ford has MyFord Touch, Cadillac…

Has Auto Racing Outrun its Usefulness?

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Since the beginning of the automobile itself, auto racing has been pivotal in the technological progression and proliferation of the modern motor vehicle. A large…