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Posted by Eric B. on Sunday, November 30, 2008 at 01:03:54 :
In Reply to: Re: How is that possible? Uh to clarify... posted by MoparNorm on Sunday, November 30, 2008 at 00:07:31 :
I thought he was saying that each car from Japan purchased by a consumer in America was sold for $1,000 to $4,000 under cost, "subsidizing" the purchase. Is that not what we are talking about?
That is what happened with my parents 1983 Camry, I heard later the first year or so of production was sold under cost (subsidizing the purchase in my mind) to gain market share. Obviously no company has the capital to do that long term.
If you are not talking about that, then who is doing this subsidizing, the Japanese government? How can they afford to pay $1,000 to $4,000 per car?
If the discussion is about currency values, and things like that, welcome to the big boys game! Just ask anyone who understands international finance what the Chinese currency should be valued at, and you will see how the game is played.
Eric
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