Forum Discussion
Yosemite_Sam1
Feb 03, 2021Explorer
Reisender wrote:
Interesting point of view on gas and stranded assets.
https://finance.yahoo.com/news/gasoline-is-becoming-worthless-210636353.html
Agree.
They can still hold the line at some point because of their higher margins on trucks.
But when production drop,, due to lower demand and sales, and capacity utilization on their huge assembly facilities goes done, that huge fixed costs can no longer be absorbed and might be time for them to shut it down and sell the factory for scraps.
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