What Economic Recovery? Inflation eats into profits for Ford & Chrysler

Both Ford and Chrysler are reporting increased sales revenues, but both are reporting decreases in profits.  The culprit, inflation.

Inflation is driving up the cost of materials used to build their cars, and even with retail price increases the result is lower profits.

Now Ford is preparing to deal with Union contract negotiations in the United States.  Obviously workers are going to want more money, because inflation is driving up their cost of living.