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Why The Big Three Put Too Many Cars on the Lot

Ford, General Motors, and Chrysler used "absorption costing" to make themselves look more profitable, researchers say. But the practice can be costly, and other companies may want to think twice before they follow suit.

February 2, 2012

It's no secret that in the years leading up to 2008, the Big Three automakers — Ford, General Motors, and Chrysler — were producing above market demand. But researchers say they know why the automakers did it, and they are warning other companies to avoid the same temptation.  Read more...

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