Comments on: How Interdependent Is Each Car Company On Another?

By: Friday Finance Findings for May 22nd - iPod Touch Giveaway Edition : Generation X Finance

Fri, 22 May 2009 14:16:06 +0000

[...] How Interdependent Is Each Car Company On Another? – Living in Michigan and coming from families that made a living in the auto industry, it’s quite clear how important the car companies are. But even though there are a number of different companies, how much do they rely on each other? Here’s some interesting information. [...]

By: weakonomist

weakonomist — Tue, 19 May 2009 14:01:02 +0000

That’s a good idea, the airline industry has been like a pile of crap since deregulation in the late 70s. I wonder if they are just as linked, it wouldn’t surprise me.

By: Dave C.

Dave C. — Tue, 19 May 2009 13:07:31 +0000

I wonder to what extent the airline industries are like this? The airlines seem to universally suck just like American auto.

By: My Journey

My Journey — Mon, 18 May 2009 19:56:21 +0000

Thought of a really good analogy I thought I'd share. In the World Series of Poker, main event, all the big names "buy" pieces of the other big named players. So if the entry fee is $10K (which I think it is this year) one big named player may buy 10% or 1K of a bunch of different players. They aren't hoping the other guy wins, but if the purchaser busts out early at least he has a shot at winning some money. My Journey’s last blog post..Give Whole Life Insurance a Fair Comparison – Get Illustrations and Compare!

By: SJ

SJ — Mon, 18 May 2009 16:00:06 +0000

Eww... That seems kind of... anti-competitive/capitalist/fun... SJ’s last blog post..No Use Crying Over Spilt Milk

By: My Journey

My Journey — Mon, 18 May 2009 15:38:32 +0000

" Another is Chrysler’s advertising agency;" This would probably explain why every car commercial is horrible. Seriously though, this isn't completely shocking. The companies (and people who make up the companies) understand the auto world and by betting on another company within the industry is sort of like heding your bet. If your company has a miserable year and the other company steals your customers you still come out a winner. That only works however when one company is stealing another's customers NOT when there are no customers. My Journey’s last blog post..Give Whole Life Insurance a Fair Comparison – Get Illustrations and Compare!

By: Donnie

Donnie — Mon, 18 May 2009 15:11:31 +0000

Also, suppliers supply parts to the various auto companies.

If Chrysler goes down, their suppliers go down, and those suppliers may be suppliers to Ford, who now goes down because they don’t have a supplier for certain parts.