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Month: April 2013

Fighting to Eliminate Burdensome State Regulation

Posted in Posts, and Syllabus Schedule

The cost of the auto distribution system in the United States has been estimated as averaging up to 30 percent of vehicle price, with 15 percent on the end of the manufacturer (in the form of advertising, loans, and rebates) and the other 15 percent solidly on the side of the retailer, or dealer. This 15 percent of the total price of a given vehicle is due to the cost to dealers of financing inventory, paying for insurance, advertising, and paying commissions.1

Costs in the Japanese auto industry

Posted in Posts

…it’s not just OEMs…

Monday I was at the award ceremony for the Automotive News PACE Supplier of the Year competition, for which I’ve been a judge for the past 19 years; more on that in a later post. On Friday (19 April) I spoke on the Japanese auto industry at an UMTRI conference in Ann Arbor, Michigan. One data point was an overview of the industry; since I begin a new (4-week) term tomorrow (22 April), let me elaborate as indirect class preparation.