1.
U.S. markets recover from steep losses
DETROIT, Sept. 3 (UPI) -- U.S. consumers may be surprised to find the prices of smaller cars rising as automakers attempt to find profits in a changing marketplace, analysts said.
The turn from truck and SUV sales to smaller models means a deep cut in profit margins for automakers, Aaron Bragman an industry analyst at Global Insight told USA Today.
Bragman said the profit on a large SUV was typically $10,000 compared with about $100 in profits from the sale of an Ford Focus.
Demand is likely to push the price of small cars but automakers are also adding features to increase profit margins, the newspaper reported.
Ford, Honda, and General Motors are adding premium features, such as leather seats and navigation systems, to small cars, in an attempt to increase profit margins.
Automakers "simply have to get (small cars) more expensive. They're losing their revenue stream and profits from big trucks," Bragman told USA Today.
|
|
|
|
|
|
| Additional Business News Stories | |
BEIJING, May 24 (UPI) --
China National Offshore Oil Corp. announced Thursday it made a new oil discovery in the shallow waters of south Liaodong Bay.
|
OTTAWA, May 24 (UPI) --
A planned shakeup in the command structure of Canada's 68,000-strong armed forces will save costs and also respond to criticism of government performance over the planned Canadian acquisition of the Joint Strike Fighter program.
|
The housing inventory rose slightly in April, which is unusual in the middle of the spring sales season. The uptick may be the result of rising seller confidence and it should ease concerns that the super tight inventory levels of the last six months...
|
It is a whole new ball of wax in Europe these days.
|
| Stories | Photos | People | Comments |
View Caption
