CAFE Standards Putting A Wrench In The Detroit Three's Plans

CNN Money reports:

(Fortune) -- Like baseball, figuring out the auto industry has become easier with the use of statistics.

Securities analysts have for years used mathematical models to forecast vehicle production rates and compute expected profit per unit minus overhead.

Those calculations are equivalent to traditional baseball measurements of batting average and runs batted in: helpful directionally but subject to distortion.

About a decade ago, analyst John Casesa, then with Merrill Lynch, came up with a way to forecast sales by measuring the pace of product development. The faster a manufacturer turned over its product line, the more robust its market share would be...

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upwards - 5/7/2010 11:29:35 PM

+5 Boost

Let's get this strait s guy from merrill lynch a company that almost went bust with thier own problems is going to predict problems for someone else.

Steve - 5/8/2010 12:02:14 PM

+2 Boost

Nice! :-)