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=> On planned obsolescence

On planned obsolescence
Posted by Jeff (Guest) - Tuesday, September 19 2006, 1:15:46 (CEST)
from 69.14.30.71 - d14-69-71-30.try.wideopenwest.com Commercial - Windows XP - Mozilla
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I'm sure I mis-spelled that term....

I was talking today with the man who sold me my first new car. I was at the dealership, waiting for my oil change, and we struck up a conversation.

He has a cousin, an engineer, who worked for GM (for those of you outside of Detroit, that's "General Motors") for years. This cousin had a friend who also worked for GM for years, devoting his time and brilliance to the company. This friend of his believed in the corporate track, that you put in your hard work, and that you will get rewarded for it.

So, one day this man invented a spark plug which would never (ever) need to be replaced. He patented the idea, and then approached his managers, thinking he would get a promotion. The managers took his idea, and offered him $25,000 for full rights to the patent, and then offered him 10% of the future sales of the spark plugs (which were surely to be in the millions and millions). He signed on the dotted line, then waited. One day, he found out that GM was never going to produce these plugs, because they make so much money each year on 'regular' spark plugs through a subsidiary parts manufacturer. So, consequently, this man committed suicide.

His wife then sued GM and won several million dollars in a settlement, or in court, I forget which.

So what's the point? I guess... I can't believe that planned obsolensence is actually part of any business model... I mean it is insane. That people could invent a part which would essentially not require maintenance and have that idea squashed, halted, for the sake of profits... I don't know, I guess I just don't understand that side of economics. Would the chapter be called "The underbelly of capitalism?"



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