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Car manufacturers discovered that they can get higher profit margins per vehicle with supply constrained, and now they are addicted to it. GM is actually cutti
by jandrese 4y ago
Car manufacturers discovered that they can get higher profit margins per vehicle with supply constrained, and now they are addicted to it. GM is actually cutting production to avoid having to give up the "low supply" margins. This is the kind of thing that works until some competitor decides to ramp production and drop prices and eat your lunch. On a side note Tesla is just opened up their Texas gigafactory and recently dropped prices across the board.
- rchaud 4y agoThis is a prisoner's dilemma situation, and it doesn't look like it's in anyone's interest to defect. By keeping supply constrained, everybody's profit margins are rising.
- jandrese 4y agoHyundai is poised to suppress Stellantis in the US in new car sales because they're one of the few manufacturers actually selling a product the average American can afford. This is despite some serious quality issue headwinds. Source: https://www.coxautoinc.com/market-insights/volume-is-for-vanity-profit-is-for-sanity/ https://www.coxautoinc.com/market-insights/volume-is-for-van...