Letter from a Dodge Dealer

Discussion in 'Economics' started by Tauvros, May 20, 2009.

  1. dealmaker

    dealmaker

    qwiktrade
    "Your position is that GM and Chrysler are in trouble because they are selling too many cars? Smart thinking."

    No. My position is, they are over producing, bringing on more and more incentives driving the value of their product down and thus their PROFIT MARGINS. All for UWA and way too many dealers. If, your competitiors have higher profit margins they can train their staff better, invest more in R&D, and assist their dealers better. Toyota the largest OEM has only 1200, there is not reason for Chrysler, Ford and GM to have 5000 dealers each.
     
    #171     May 26, 2009
  2. Sure there is - it's the same reason Boeing needlessly spreads parts manufacturing around the country - it gives you a bigger political footprint when it comes time to ask for government handouts.
     
    #172     May 26, 2009