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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Spekulatius who wrote (44052)8/24/2011 10:23:15 AM
From: robert b furman  Respond to of 78728
 
Hi clownbuck,

The HD truck business is all about fixed absorption covering all of the dealerships overhead.

Truck sales are so cyclical - at times you starve - so service and in particular parts are huge.

This is why as you say the integrated approach is what PCAR is striving for.

They don't want cheap knock off parts hurting 50% margins on big parts sales revenue.

They want to retain exclusivity amongst their less than 100 dealers nation wide.

Bob