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ProfessorGAC

(72,212 posts)
3. He'll Be Completely Ignore
Sat Mar 29, 2025, 09:03 AM
Mar 29

The net margins in the auto industry are about 7%.
If costs go up by 25% of the 55% tied up in parts, overall cost to produce goes up 13.75%
7 - 13.75 = -6.25%.
The automakers simply cannot hold the line on prices without going broke.
It took me 30 seconds to find these numbers, another minute to confirm those margins by looking at Toyota's & GM's income statements. Under 2 minutes to figure out that this ask (threat) is impossible.
Another folly coming from the gang that can't get out of their own way.

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