Infrequent Update

Thursday, January 17, 2008

Nokia leaves Bochum

The decision to close the plant in Bochum has stirred up a heated debate over here in Germany. I find the media's exaggerations do the issue no good. Some politicians claim that Nokia does a kind of "rude stoneage capitalism". That's not exactly true. Apparently they found that they can make more money by assembling their mobile phones elsewhere.

However, when asked the management did not really come up with convincing monetary arguments. Also, it seems the way they informed their employees in passing by violated their own company policies. In the end, they did not do themselves a favor...

I do not think this is a case for intervention from official sides, unless it turns out that Nokia actually receives public money to open plants and close them again. That would indeed be a bad situation. And it sheds some light on the usefulness of public money subsidies...

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