Sterling recovers

[PM-Junkie]

I hope you are going to tell them everyone says your economic theories are s**t. And they sue. I could do with a laugh....

no - no more laughs please. My sides are splitting already with the tripe these two are coming out with.

[BrilloPad]

no - no more laughs please. My sides are splitting already with the tripe these two are coming out with.

Its christmas : we all need a laugh.

[Mich the Tester]

Yes because the Poles and Hungarians are going to start buying the Porsches, Mercs and BMWs that the City boys aren't buying?

Yes, BMWs are very popular among the executives of Eastern European personal entertainment chemicals brokerages and adult comfort service providers; two examples of anti-cyclical industries.

[sasguru]

I am off now to see my legal team.

one-man band solicitor with an office above a kebab shop.

Isn't it sweet how atw tries to play the big tycoon when we all know what a shambling buffoon he really is

[AtW]

Yes because the Poles and Hungarians are going to start buying the Porsches, Mercs and BMWs that the City boys aren't buying?

It may suprise you but the City was not a prime market for Porsches and other elite cars - the people who were buying most of them are new rich in countries like Russia - even 10 years ago there were more top of the range (Merc 600S) cars in Moscow than in London, but in the last few years the difference became huge. BMW mainly sells chav 3xx series here - more numerous than Mondeos now, Mercs also sell cheap cars here.

The real issue for these premium manufacturers now is that due to oil/gas/minerals price collapse their new clients ain't going to be buying as many of those cars anytime soon.

[sasguru]

It may suprise you but the City was not a prime market for Porsches and other elite cars - the people who were buying most of them are new rich in countries like Russia - even 10 years ago there were more top of the range (Merc 600S) cars in Moscow than in London, but in the last few years the difference became huge. BMW mainly sells chav 3xx series here - more numerous than Mondeos now, Mercs also sell cheap cars here.

The real issue for these premium manufacturers now is that due to oil/gas/minerals price collapse their new clients ain't going to be buying as many of those cars anytime soon.

Right. So you agree the market for luxury cars has collapsed all round.
So where will BMW and Merc sell their stuff now?
I predict the pressure will make them look for cost savings and they will hollow out Germany by moving production to cheaper locations abroad.

[Cyberman]

Right. So you agree the market for luxury cars has collapsed all round.
So where will BMW and Merc sell their stuff now?
I predict the pressure will make them look for cost savings and they will hollow out Germany by moving production to cheaper locations abroad.

People don't spend when they have little disposable income or are worried about their jobs. HMG are responsible for this situation after 11 years of ever-increasing taxes and red tape. The current impass will take a new Tory government to unravel.

[AtW]

Right. So you agree the market for luxury cars has collapsed all round.

Based on Audi figures that does not appear to be the case but it is plausible to expect BMW/Merc are down.

The important thing that you are missing is that the City sales stopped being top market (apart from local dealers obviously) for some years now - that means you and your buddies don't mean much insofar as alleged luxury cars sales collapse.

I predict the pressure will make them look for cost savings and they will hollow out Germany by moving production to cheaper locations abroad.

Yes VW will probably make more Skodas, but Merc/BMW/Audi will remain in Germany, certainly the top models - carp like "Smart car" might be made somewhere else, just like they make Mini in UK.

[sasguru]

Yes VW will probably make more Skodas, but Merc/BMW/Audi will remain in Germany, certainly the top models - carp like "Smart car" might be made somewhere else, just like they make Mini in UK.

I didn't realise Alabama was in Germany:

http://www.mbusi.com/

Or in fact any of the 21 countries listed in this article:

http://en.wikipedia.org/wiki/Mercedes-Benz

Why do you think that Merc and BMW can afford to pay their assembly workers 30-40 Euro an hour indefinitely?

http://www.motoring.co.za/index.php?...icleId=4716873

[AtW]

I didn't realise Alabama was in Germany:

http://www.mbusi.com/

Or in fact any of the 21 countries listed in this article:

So you think that having manufacturing capacity in USA, which is a big customer, is somehow a bad thing and sign that Germany is losing it's manufacturing?

Hint - they do it to:
a) reduce currency risk
b) save on deliveries
c) this was all setup when their currency was strong (so good time to invest)

This is not bad outsourcing - I would not have minded if UK kept its industry if it was shifted in parts to where the biggest customers are, but reality is that UK given up on industry totally wasted hard work of previous generations, where as Germans (and the French) managed to keep majority of their stuff and they sure as hell will still have it - that's because they have got balls to confront difficult problems and don't jump to quick short term solutions that would pay big Xmas bonus but screw up everyone down the line - in other words they do totally opposite what the City does.