The Deal
Wednesday, November 25, 
6:16 am

Stating the obvious with a magic number

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A new report from automotive consultants Harbour-Felax Group states the obvious problem facing Detroit's Big Three, but quantifies it with a figure: $2,400 per vehicle. The magic number is the profit gap between U.S. carmakers and Asian rivals, according to the report, which is the hook for the latest series of articles lamenting Detroit's troubles. The group used techniques that most bloggers and journalists use to come up with analysis and opinion, annual reports and SEC documents, according to a Detroit Free Press article. So what gives this group more credibility than bloggers or journalists? Simple, years of experience working in the auto industry. These former auto executives suggest that the Big Three need to work with UAW to further whittle down not only health-care costs, but the various job titles and associated pay scales that accompany them. The group is confident that the Big Three — more specifically General Motors — can return to profitability, but only if they follow the report's advice. It looks like somebody is trolling for work. —Matthew Wurtzel

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