According to a WallStreet Journal report this is not just a rumor as Dell is actively looking for buyers for all of it’s US Factories. I have posted in the past that it’s my opinion the true cost to bring Dell here will never be known and now what happens when Dell packs up and heads for China?

Dell Inc. is trying to sell its computer factories around the world, a move to sharply overhaul a production model that was long a hallmark of the PC giant’s strategy but is no longer competitive.

In recent months, according to people familiar with the matter, Dell has approached contract computer manufacturers with offers to sell the plants. One person briefed on the plan said he expects the company to sell most — and possibly all — of its factories “within the next 18 months.” Other factories could close, this person said. Dell would enter into agreements with the contract manufacturers to produce its PCs.

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I have also in the past commented that it is a good idea to watch Dell’s stock price and any time you see it slip under $20 things could get very ugly. Well with Dell reporting a 17% drop in profits the stock followed dropping from nearly $26 to $19 in a week. Mr. Dell himself in what appears to be an effort to show support for the stock has bought almost 5 million shares in the past week but that has failed to stop the fall.

So once again we see those incentives which both our local and state governments like to give away being wasted if Dell splits and doesn’t find a buyer for the local plant. Who shall we give money to next?

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This entry was posted on Wednesday, September 10th, 2008 at 12:17 am and is filed under Business News, Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.