Quote:
Originally Posted by Fordors
The amount of profit allowed by Ford was typically ten percent. So to an outside observer it appears that Briggs made a $23 profit on every Model 155 town sedan body sold to Ford. Unfortunately for Ford’s suppliers, they had to pay for their labor, overhead, capital expenses and stockholder dividends out of their 10% “profit”.
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Ford still has the "profit cap" in their contracts for suppliers. That is why most of the suppliers keep 2 sets of books.