Trump Accidentally Wrecks His Own Tariff Spin in Leaked Call - Greg Sargent

[paleotn]

6. Then again, that's generally where profit margins are better. Higher end vehicles.

They focus on SUV's and "plush" trucks due to better profit margins. Margins driven by demand because they can charge more for vehicles people want. Good old willingness to pay (WTP) in behavioral economics. That's also where they spend nearly all their ad dollars, driving said demand.

They've never made much on economy vehicles in per unit terms or in total the last 50 years. That's not what they're for. They're marketing tools, building brand loyalty, with the hopes of selling more expensive and more profitable vehicles once consumers are older and have more money. Well, credit anyway.

But to your point....Can't raise prices? (Yeah, right.) They're not going to take that in their bottom lines. They'll refigure things based on projections of most profitable vehicles and part of that is reduced overall production. Reduced production = reduced jobs = reduced economic activity and all feedback loops that entails. Coupled with the other stupid shit Donny's up to = recession or worse.

This is what happens when fucking morons dabble in business and economics.