situation would have become even worse.
Another factor in the human resources area is the reaction by the consumer.
A great deal of human resources have been wasted by Yugo owners waiting for
the dreaded tow truck to show up to haul away the Yugo carcass. Any vehicle
owner who is uncertain of his/her vehicle’s performance at 7 AM as he/she
is about to drive to work, senses a great deal of despair. This is a great
waste of human resources for the consumer.
While the consumer senses the waste of natural and human resources in a
poor quality product, so does the manufacturer. People who argue that low
quality manufacturing processes keep costs low for the consumer and hence
stimulate demand should look at the Yugo example. In the mid-1998’s the
Yugo was by far the cheapest car in the United States at $ 3995. By 1991,
the Yugo was no longer sold here and was synonymous with the word “lemon.”