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To: russwinter who wrote (7488)	2/9/2004 5:51:50 PM
From: re3	Respond to of 110194

<<<I definitely DO NOT expect them to sell autos at any more of a loss than they are already. maybe salesperson commissions would be reduced...

To: russwinter who wrote (7488)	2/9/2004 5:53:15 PM
From: mishedlo	Respond to of 110194

I definitely DO NOT expect them to sell autos at any more of a loss than they are already. Hmmmm Exactly why are they selling at a loss today? a) the goodness of their heart? b) they like Russ? c) the FED is forcing them at gunpoint? d) no pricing power, little demand, and too much competition? which of those is it? If none of the above then WHAT? If it is d) then how can they pass on that increase, and/or IF they attempt to, who will be willing to buy? Here is my prediction: They hike prices Russ gloats Zero cars sell Prices come down Mish

To: russwinter who wrote (7488)	2/9/2004 9:33:05 PM
From: TH	Respond to of 110194

russwinter, They may sell them at a much bigger loss that you might think. All that tooling and fixed overhead is already sunk, regardless if they build one car or one million. I agree that PC, and many other resins, are on the rise. My direct customers are having real problems getting price relief for increases in ASA. And because the sub-component I supply to them is imported from Germany, we have a major exchange impact. With a 24-36 month cycle for automotive development, its getting very hard to meet the OEM (Ford, GM, Toyota, ect) cost targets. BTW, I am long time lurker on this thread. I think its the best thread at SI. I've learned a lot. thx TH