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Originally Posted by Piotr
Its very common for some divisions of a business to run at a loss and other at a profit. The problem GM have is that too many are running at too high a loss
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Yeah, I get that. The dealership sells cars for no profit/loss, and recovers money at routine services for example, Toyota style. Sony sells consoles at a loss, and makes it back through much lower unit production costs of games, or at least that's how it was supposed to have been with the PS3 in the early days.
But I don't see how they can sell the same product at both departments, run the same line of engines etc, and one profits and the other one loses.
Also, I still would like to know which marques are profitable, and whether profitability includes future earning potential. Say, Chevrolet may be running at a loss right now selling the wrong cars while Rome burns, but it's got the heritage, so if bought by creditors and turned around, it'd be easier to attract people to the 'new' Chev, than the new Daewoo.