General Motors,Ford,and Chrysler have all recently experienced financial distress because
A) the Asian markets such as China, India, and Japan entered the North American market and captured an even larger share.
B) the value pricing strategy used by the "big three" was flawed and North Americans' perceptions of value had changed.
C) they were continually using deceptive pricing when establishing the manufacturer's suggested retail price on their vehicles.
D) their costs got out of control, causing their total costs to exceed their total revenues.
E) their product line was not changing with the times in order to meet changing environmental standards regarding emissions.

Question

Quizplus · Accepted Answer

The financial distress experienced by General Motors, Ford and Chrysler was largely due to their costs getting out of control, leading to their total costs exceeding their total revenues. This was caused by various factors such as high labor costs, a lack of cost-cutting measures, and a reliance on SUV and truck sales which weren't as profitable as expected. This resulted in a significant decline in market share and profitability for the "big three" automakers.

General Motors,Ford,and Chrysler Have All Recently Experienced Financial Distress Because