Global Overcapacity for Vehicle Production
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Plant overcapacity increases supply when demand is the same, thus, prices are lowered. Lower prices lead to less revenue and profits, which cause a need for more vehicle and revenue to spur profits. Unless plants are closed, overcapacity could continue to hurt earnings. … "Global Overcapacity for Vehicle Production" will have a long-term negative impact on this entity, which subtracts from the entity's value.
SWOT Analysis Survey
SWOT Weakness: Global Overcapacity for Vehicle Production
Plant overcapacity increases supply when demand is the same, thus, prices are lowered. Lower prices lead to less revenue and profits, which cause a need for more vehicle and revenue to spur profits. Unless plants are closed, overcapacity could continue to hurt earnings.
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