Posted:
#101
Depeche,
Sure it is.
Why do the US automakers have such abhorrent margins and debt relative to the others like Honda and Toyota?
(keep in mind that GM has several classes of preferred stock which is even more obligation and market cap versus all others who do not)
Unions have choked the automakers, they overpay the workers and the benefits are too good that it makes these companies unable to make a profit.
Check this out-
LINK
Why are profit margins relative to operating margins so terrible? They are losing money on cost of sales but on the bottom line they are getting SMUSHED.
Compare operating margins on Toyota, then compare on GM.
Toyota for last year had a 7.7% operating margin.
GM had a -5.5% operating margin.
F had a -4.9% operating margin
HMC had a 4.48% operating margin
That is amazing, just amazing. cost of sales is way too high for the domestic automakers, they have too much debt and pension liabilities to expect to make it longer term.
Sure it is.
Why do the US automakers have such abhorrent margins and debt relative to the others like Honda and Toyota?
(keep in mind that GM has several classes of preferred stock which is even more obligation and market cap versus all others who do not)
Unions have choked the automakers, they overpay the workers and the benefits are too good that it makes these companies unable to make a profit.
Check this out-
LINK
Why are profit margins relative to operating margins so terrible? They are losing money on cost of sales but on the bottom line they are getting SMUSHED.
Compare operating margins on Toyota, then compare on GM.
Toyota for last year had a 7.7% operating margin.
GM had a -5.5% operating margin.
F had a -4.9% operating margin
HMC had a 4.48% operating margin
That is amazing, just amazing. cost of sales is way too high for the domestic automakers, they have too much debt and pension liabilities to expect to make it longer term.
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