Don't wager too much.
There is never an advantage to making losses, even if you can offset them against tax on profits elsewhere. Where you are trading internationally, and can control transfer prices, it is usually advantageous to arrange to make a loss in a high-tax country and a profit in a low-tax one. That, however, does not amount to a net loss.
In this case, the manufacturers were saddled with a massive, state-inspired, consolidation of lots of different car companies, fairly incompetent management; a bloody-minded, unionised work-force; and an inability to come to terms with the loss of protected markets. It was a recipe for disaster that led to the disappearance of many once-famous marques and the complete collapse of what had once been (I believe) the world's second biggest car industry. Making a small loss on each Mini was almost a success in these conditions.
John
On Mon, 04 Apr 2005 15:00:07 -0400, Graywolf <[EMAIL PROTECTED]> wrote:
I would wager that was before taxes, and that there was a damn good tax advantage doing it that way.
graywolf http://www.graywolfphoto.com "Idiot Proof" <==> "Expert Proof" -----------------------------------
mike wilson wrote:
British Leyland (Rover) made the original mini from 1959 to about 1999. For the first thirty years thay made an average 10/- (50p - $1) loss on every one. But that's just us.....
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