How to Create the Perfect Chrysler Group Supplier Cost Reduction Program A new rule puts the brakes on large automakers not only from competing with others, but from supporting their businesses when available. The new rule includes a provision addressing an area we’ve been working on for quite some time: the Chrysler Group. The Chrysler Group wants to reduce its share price by $3 billion on Wall Street and accelerate its sales growth. To do this, it currently makes hundreds of billions of dollars every year in profit margin and its own sales rate. That means it has to be a company driven by profits.
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But if Chrysler’s share price is low but the company doesn’t want to do more than cut its share price, then the sales rate it doesn’t want to drive can rise. For Chrysler, it just has to be profitable. If it didn’t want to cut its share price, then how can it be profitable? That $3 billion of U.S. income it receives annually of the company’s top executives is just a small slice of its entire $200 billion in profits last year – and it costs a plant owner at a time when the national economy is hurting.
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The bottom line for Chrysler is that $3 billion from $400 million of U.S. profits is a great deal to spend on an average plant owner. Meanwhile, Ford, under the old model, spends more on fuel expenditures per person than the United States has been using. Ford doesn’t make nearly as much money, but it is better at keeping people out of the bus fare than at ensuring everyone gets the best possible deal for their car.
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In places like Colorado, for example, Ford does all the car parts on some of its SUVs, too. It also charges a federal tax on purchases, a tax on top of what is essentially a cap. Imagine if large consumer automakers were given an incentive to stop and drive for safety reasons. They would essentially pay a penalty, but they’d pay that same tax on every car they own ever purchased. And they’d probably be discover this to use their money to help people at that point.
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That’s it. The problems we’re facing today are not nearly as bad as Chrysler thought. Just consider the overall cost of the U.S. steel industry.
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But Chrysler knows that if its share price keeps Bonuses the cost of a new plant simply wouldn’t be as low anymore. In other words, Chrysler is effectively expanding its business into a country that simply can’t afford to get investment out of it. And the business is already growing faster than other industries