Vfacts For December

[vztrt]

Originally Posted by GTP006

In Holdens case (who are the ones discounting), the lesser profit is the better option as they have an over supply issue. Any profit (or least loss) is better than having old stock costing you 10's of millions a month just sitting around.

I had wondered which way those maths were supposed to work - for Ford or for Holden.

New Holden: sell $10 - profit $2 - sell 10 = $20 (if they don't sell, drop $1.50 for cost of cash, storage, downtime, cost to move them).
New Holden (with their over-supply) Make that profit $0.50ea. Sell 10 = $5.00 profit.
Discount Holden: $ 9 - profit $1 - sell 18 = $18.00

Hrmmm, wonder what I'd be doing?

Thats a good point, but Ford apparently didn't have the stock so not discounting was a better option for them.