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Author: MrMoros One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 18139  
Subject: Re: Unions in the 21st Centery Date: 2/14/2002 6:59 PM
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jvancil-

Yes, that sounds reasonable for direct labor, and given that it is a much higher percentage of the cost... rather than the retail price.

Are you sure?? How much higher??

If you look at another post (http://boards.fool.com/Message.asp?mid=16715295), Ford's margins aren't that good, so the average profit on a $30,000 car is probably $1,500 (5%). I know that someone mentioned the $15,000 margins on the Expedition, but that is only one vehicle and probably represents the extreme best. One can use the other extreme to show how Ford looses money or brakes even on small cars and sedans.

Again, I'm trying to use averages and generalizations to proove my point. I'm beginning to wonder if that's a good idea. There are simply too many variables that affect the numbers (i.e. tire recalls, profitable trucks vs. unprofitable cars).

Maybe (if I have the time) I can find a more in-depth analysis of this issue and share it with you.

Very good discussion!

MM
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