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I cannot understand how in the world these car companies are surviving this rebate blitz.

Actually, at this point the American automotive industry profitability seems mostly driven by unit sales. Between capital equipment and legacy costs, fixed costs account by far for the highest percentage of the cost of a new car. As such, it's essential for the Big 3 to move units, in order to recover those fixed costs.

It's not so much about making money as it is about not losing money.
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