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Politics : Formerly About Advanced Micro Devices
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To: Alighieri who wrote (510078)9/3/2009 11:23:02 AM
From: i-node  Read Replies (2) of 1579772
 

What a horse's ass you are... the article itself tells you that it's a profitable business for Ford...

The article says:

That is not a huge number of vehicles, and margins on sales to public agencies are notoriously slim, but analysts say it is still a profitable business for Ford.

"The majority of the investment in the Crown Vic was paid off so long ago that they're basically a license to print money," said auto analyst Jim Hall of 2953 Analytics LLP in Birmingham. "They also have zero marketing cost."

The article itself tells you that as long as they can stick with the same car, where there are no marketing costs and minimal development costs, they can make A LITTLE BIT OF MONEY.

You can't stick with an '07 car forever. They are at a point where they have to redesign the vehicle and they're clearly saying, "There isn't enough demand for the product to make it worthwhile".

As long as they don't have the normal, routine costs that car manufacturing carries with it they can pay more for labor. But when they have to spend money on development & marketing, the product is no longer profitable.

It should be obvious to you, genius, that if they were making money on the vehicles they would keep selling them. The reality is the margins are too slim to support continued development and the car has just about run its course. Now they have to spend money. And with the ridiculously high labor rates they now have, it is impossible to compete.

So, they'll lose market share to the Japanese. Probably to the Koreans, too.
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