CategoryGuest Commentary

Guest commentary: Automakers face key operating challenges that require dealer buy-in to navigate

Customers at a Ford dealership in Colma, Calif., on July 22, 2022. David Paul Morris/Bloomberg
The potential of unconstrained output risks supply outrunning demand to the detriment of margin stability. (BLOOMBERG)
KT
By:
Kevin Tynan, Director Of Research The Presidio Group
December 17, 2024 11:00 AM

Automakers are grappling with several operational challenges as the U.S. industry cycles to a period of inflated overhead and tenuous demand. Manufacturers are notoriously — but understandably — slow to tap the brakes on output, as production goals are determined largely to overcome a heavy fixed-cost structure. Pinning output to organic demand is less of a priority.

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