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Detroit automakers profit margins lag behind Hyundai and VW which have 9% margins. The lower margins leaves Detroit automakers more exposed to risks from swings in the market. Detroit automakers are showing improved discipline in reducing inventory overhang and keeping supply in closee relation to demand. Still Ford's small car inventory is much higher than normal and Ford needs to reduce production to balance supply and demand at its higher prices.
Detroit's Welcome Sticker Shock
Wall Street Journal 05/04/2012
GM Cuts Benefits for Salaried Staff
Wall Street Journal 02/16/2012
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