A Big Three Question

[Cogswel_Cogs]

I don't understand why 3 of our biggest manfactures only make cars.
So many forign manfactures make other products.
Porche, Honda, etc.

Why did the big three never or actually I remember Chrysler used to make Air conditionersbut recently why have they never tried to produce other products?

 

[Golf4food]

A lot of those other companies that make other things also started out making those other things and then started making cars later. Product diversification only works if you can acheive economies of scale and make a profit on those products. Specialization is often required in order to do so. Now is not the time for any of the big three to start making dish washers. (You have startup costs, development, marketing, new sales force, new labor costs...)

 

[Cogswel_Cogs]

I wasn't saying that it was the time. But with diversification, a company often is able to not face total meltdown whenn nobody is buying cars.

 

[Cogswel_Cogs]

Not that annybody is really buying air connditiors or washer annd dryers.

 

[bicker]

Figure that when the Big Three have developed some aspect of diversification of worth, they've been forced (by the demands of their owners) to spin it off: For example, Hughes Electronics, Delphi and EDS all used to be part of GM.