Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
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.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.