DEG
Ram Guru
- Joined
- Aug 10, 2023
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- 668
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Except they didn't make huge profits. Don't let stories that use sensational, but meaningless, terms like record profits fool you.
Most auto manufactures operate on very slim margins and on the verge of bankruptcy from year to year.
This story shows Stellantis operating margin from 2001 - 2022. During 86% of those years their operating margin was less than 5%. I currently make more than 5% on CDs at my bank with absolutely no risk of losing money. They lost money during 23% of those years and made less than what I'm earning on CDs for the overwhelming majority of those years. Making 15 - 20% in the auto industry for a few years just helps them recover from past and future years where they will lose money. It helps them stay in business and prevents the government from using more of your tax dollars to again bail them out.
