US reports claim Dell plans to close Limerick plant

From The Limerick Leader

this is from the linked WSJ article … =wsjcrmain

The overall quality of product from Lodz is supposedly low compared to Limerick .

The number of recalls and consequent lost sales owing to quality issues down the channel cancels out any cost savings for now .

Dell is trying to buy time because this chart looks ugly

Probably just dragged down in the overall bear market. Michael Dell wouldnt have bought $100 million of shares back in July if he didnt know something positive.

Of course, whatever that is, its not necessarily positive for the people of Limerick.

We are in a credit crunch, that means there is a scramble for cash, it means business can’t get funding to grow easily and more often must contract. As Information Technology is a mostly a service to business, it contracts also with business.

More businesses are failing, meaning there is more equipment available on the market in liquidation sales so there is less demand for equipment from HP, IBM, Sun or Dells product. The only way to survive this market is to be cheaper than your competitor, HP already outsources most of its production, IBM sold off it’s low end to Lenovo, Dell is following this industry trend.

I’ve heard this too, from several sources. The problem is, you can fix quality issues in a year, you can’t make Ireland cost competitive in anything like that time frame. The market will love the idea of a long-term saving over a short term cost; even with a bump in the road while the get Lodz up to scratch.

I’m really worried about Dell since I heard about the contracting of manufacturing. I just don’t see a way out for Limerick. :frowning:

Sorry to correct you, but your comments here about low quality and high recalls in Lodz are without foundation, in fact, the end products (laptops) are manufactured to worldwide standards and they meet these easily. Your sources may be Limerick based and possibly a little biased.
As for buying time, Dell has a very sharp business team in the US driving the vehicle, and it does not need to do this.

A little birdie has told told me that Matt Cooper will be covering this story after 6pm. :wink: