More Farage wisdom

[Old Greg]

Classic bien-pensant Anglo-Saxon justification for our lack of economic discipline, I'm afraid.
Historically the German economy has always thrived (at least when they've been politically stable) because they make quality products and culturally they're not shallow enough to fall into a consumption mentality.

I'm not arguing that having the Euro as it is hasn't helped them, especially during the recession - just that they would probably thrive whatever ( at least after the Haartz reforms).

So if nobody consumes, who produces?

[sasguru]

So if nobody consumes, who produces?

There'll always be consumers - it's just better economically to be a producer.
We're a classic consumer country, Germany is a classic producer.
Obviously it would be nicer with a better balance but in an imperfect world I'd rather have a trade surplus than a deficit.

[Mich the Tester]

I prefer to look at outcomes and to follow the money. The Euro has enabled Germany to keep the cost of its goods very low. It has eradicated any price and cost advantages that lower cost/ poorer countries might have to bolster their economies.

So you can deduce the strategy from the results? Yes, this is what has happened, but my point to OG (who then conceded he'd used the wrong term, because he's an intelligent chap), was that this was not the intention of Germany, which had always produced expensive high end goods and sold them worldwide while having a strong currency.

[darmstadt]

I prefer to look at outcomes and to follow the money. The Euro has enabled Germany to keep the cost of its goods very low. It has eradicated any price and cost advantages that lower cost/ poorer countries might have to bolster their economies.

Really, I take it you haven't bought anything German recently or even been shopping in Germany? Go to your local white goods center and compare prices of German goods and those of other countries, how much is a BMW, Mercedes, Audi, etc against their equivalents. I think you'll find its more quality rather than price. Presumably you're the type of person who buys cheap knock goods in the market which have to be replaced regularly rather than something with quality (which is something British manufacturers are very good at) which lasts...

[Gittins Gal]

Utter bollocks. How come Nissan in Sunderland are working 3 shifts to cope with demand from Europe and elsewhere - the Qashqai is selling like hotcakes in Europe and elsewhere, designed, engineered and built in Britain, the only thing Jap about it is the badge.
As someone else has noted, Honda has been producing unattractive cars for ages.

I have a cousin who works at Honda. Last year the entire workforce was summoned to the atrium, a video screen dropped down and some talking head from Japan delivered the news that they needed to make several hundred redundancies and reduce production to 2 shifts.

Last month, they received another summons and this time they were told car plant 2 was to be closed with the loss of another 450 jobs. And that of my cousin who'd been on quality control since the mid 90s.

Again,While the UK market has held up, the CEO emphasised poor growth in the Eurozone as the main factor in this decision.

So, how is that not linked in some way with the state of the EU economy? It's not exactly surprising they're not selling like hot cakes in Spain, Italy and Greece is it?

[DodgyAgent]

Oh dear, asking someone to prove a negative.

OK well prove what WAS Germanys motive. Presumably they did it for their own economic benefit, and presumably as you seem to think the Germans are so clever they would have some idea that lo and behold they would be able to manufacture BMWS as cheaply as Italians could manufacture Fiats. Or are you saying it was all an unintended consequence and that really the Germans just got lucky?

[DodgyAgent]

Really, I take it you haven't bought anything German recently or even been shopping in Germany? Go to your local white goods center and compare prices of German goods and those of other countries, how much is a BMW, Mercedes, Audi, etc against their equivalents. I think you'll find its more quality rather than price. Presumably you're the type of person who buys cheap knock goods in the market which have to be replaced regularly rather than something with quality (which is something British manufacturers are very good at) which lasts...

As usual you miss the point of the argument.

[Mich the Tester]

So, how is that not linked in some way with the state of the EU economy? It's not exactly surprising they're not selling like hot cakes in Spain, Italy and Greece is it?

Many Eurozone economies are struggling, but as sasguru rightly pointed out, Nissans are doing well, especially in nothern Europe, and to add to that, Fiat have been selling 500s faster than they can build them and BMW are opening a new factory in Holland because they can't produce enough at the moment, so there isn't much excuse for Honda; unfortunately they seem to be making the wrong products.

[DodgyAgent]

I have a cousin who works at Honda. Last year the entire workforce was summoned to the atrium, a video screen dropped down and some talking head from Japan delivered the news that they needed to make several hundred redundancies and reduce production to 2 shifts.

Last month, they received another summons and this time they were told car plant 2 was to be closed with the loss of another 450 jobs. And that of my cousin who'd been on quality control since the mid 90s.

Again,While the UK market has held up, the CEO emphasised poor growth in the Eurozone as the main factor in this decision.

So, how is that not linked in some way with the state of the EU economy? It's not exactly surprising they're not selling like hot cakes in Spain, Italy and Greece is it?

It might have something to do with the fact that Honda make sh*t cars.

On the other hand:

BBC News - Jaguar Land Rover's post-recession success story

[Mich the Tester]

OK well prove what WAS Germanys motive. Presumably they did it for their own economic benefit, and presumably as you seem to think the Germans are so clever they would have some idea that lo and behold they would be able to manufacture BMWS as cheaply as Italians could manufacture Fiats. Or are you saying it was all an unintended consequence and that really the Germans just got lucky?

Are BMWs suddenly just as cheap as Fiats?



Where do I buy a BMW for the price of a Panda?