Akkam’s Razor

This might be the first time in history that both Ford and GM saw the writing on the wall and decided to ACT and not REACT. I thought it was wierd when GM started cutting back on production, especially in trucks. But that makes sense, especially given the rumblings of $105 per barrel oil. Also, knowing GM is pushing up production of the GMT900 trucks, it makes sense to run down inventories.

Cutting all those white collars, union concessions on benefits? Well, knowing that Chinese produced vehicles (Cherry) will be here in 2007, it would certainly make sense to reduce your cost structure.

And moving Lutz to global platforms? Zeta is Australian. Kappa is basically Australian. If you design your platforms for one market, it certainly is cheaper than having three different vehicles for three different markets for one segment and nameplate.

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