The cost of doing one digital copy of a book is the same of doing 1 million copies!

terça-feira, maio 27, 2014 David Barradas 0 Comments

From the FT

Ford chief Alan Mulally warns on European overcapacity

By Henry Foy, Motor Industry Correspondent

Alan Mulally, chief executive of Ford, has warned that European carmakers need to cut back further the numbers of cars they can build as excess capacity on the continent remains at dangerous levels.

Idle production lines and underproductive factories have plunged almost all of Europe’s major carmakers into billion-dollar losses in recent years after annual sales on the continent fell by about 4m cars between 2007 and 2013.

Why people should invest if there is already overcapacity in many industries? The cost os setting up a production line is huge but to produce more 10,000 cars it's easy.

The cost of doing one digital copy of a book is the same of doing 1 million copies! This is very deflationary.

I think automation and digitization are very deflationary and very economic people wise. Unemployment is not going down soon.