Dell offloads Polish factory to Taiwanese manufacturer Dell is offloading its factory in Poland to Taiwanese knock 'em out giant Foxconn, less than a year after axing most of its Irish workers and shifting their jobs to the East European facility. Hon Hai Precision, Foxconn's parent, has reportedly agreed to take over the factory in return for around $310m. A Dell Poland …
Any company, anywhere, is dedicated to making money for the people who own it. If Jim High wants $30/hr and Kim Lo is happy with $10/hr for the same job, guess who gets the job. Hell, it's not just companies either - if you wanted someone to respray your car or build an extension on your house, you go for the cheapest quote that'll get the job done.
Granted, there is also the factor of how good a job they do. But when it's a job like production-line assembly, and there's a QA check downstream to keep them up to scratch, there isn't much difference there.
dell also pocketed 54m euro in order to ensure the jobs went to a polish $10/hr person as opposed to a chineese $10/hr, only to sell the factor for 310m, and giving a vague promise that they will keep getting dell's from there.
The EU is a bit thick too mind you. It should have said "you get this 54m as long as you agree to the following rules" and the force dell to stay there and employ people for X years etc etc etc.
Still. Dirty bastards.
The Irish government got what it deserved and the Irish people got the governments it elected.
The Irish government bet the house[1] over several decades of direct foreign investment [FDI] instead of trying to foster local businesses.
FDI brought in lots of instant jobs and instant wealth. However, they ignored the possibility that said instant wealth might also instantly disappear, indeed, would surely disappear once Ireland became too expensive for the multinationals.
[1] Half built, without many facilities like primary schools or public transport, sold on 100% mortgage and overpriced at that time. It is now probably in negative equity. Go Fianna Fail!
First the EU dickheads give Dell-boy €54m to move to Poland.
Then they give €14m to the ex-workers
Then Dell sells it for €205m to Taiwan
Beats me why Dell even bother making what passes for a computer at all when they can engage in business practices like that. I also find it hard to believe that Dell didn’t not know that this deal with Hon Hai was nor on the table when they moved the business to Poland.
*NOBODY* in Europe should ever buy a Dell computer again.
I bet the EU and government kleptocrats probably feel a bit foolish now....... on second thoughts they probably don't give a fuck, I mean it's only taxpayers money, and there’s plenty more where that came from, and it's not like they are going to get a bad annual review, or loose a bonus, or have their pension cut, or anything like that, they are all in permanent jobs with inflation proof pensions...... unlike the Limerick ex-workers.
I wonder will the EU look for it's money, sorry, my money back from Dell.
Black Helio, it's all a conspiracy from the start.
...have three reasons to exist:
1.) Grow the company
2.) Increase the bottom line
3.) Increase stockholder equity
Nowhere is providing jobs ever a reference point in a corporation's mission statement. If they could dump their entire product line and better accomplish the above by selling wicker baskets in roadside stands ... they would. It isn't about the product folks, it's all about getting your money.
If you dislike the way a corporation behaves, vote with your pocketbook ... don't buy the product. And in this case not buying Dell is likely a very good move given the pitiful quality of what they offer.
I used to think like that and listen to people like you.. but I actually brought one of the their products, and realised you talk shit! The quality of their machines is much better than the crap they sell at my local PC store, their support is actually pretty good (My gfx card went, I had a replacement 24hrs later)..
Seriously, Foxconn (Hon Hai) are the number one CEM in the business, the quality will improve, the price will drop and the plant will expand supplying more jobs to the locals. If in doubt look at what they have done in the Czech Republic, their plant there is the number 2 export earner for the country after Skoda and is expanding every year. What they should do is buy Dell out elsewhere and show them how it's done.
None of the above has anything to do with Dell being the biggest bunch of shysters in the business who are not fit to polish monitors or dribble on keyboards, they are good at giving the simple minded a simple product that keeps them happy between re runs of the x factor. That and spam mail, but an IT company.....not in a long while.
going have to change the ad.
Instead of a decent multi-cultural bunch singing about the delights of stamping Dells out of coloured plastic, its going to have to be a 4 Taiwanese singing about how they could do the job cheaper and faster than 30 irishmen or 40 polish people.
Fail..... for all the cash paid out by the EU
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