A decrease in revenue from one time period to the next, usually quarterly or annually. A profit squeeze may happen for any number of reasons. Examples include rising costs, changes in regulations, or more competition.
A reduction in earnings perhaps caused by a poor business climate, increased competition, or rising costs.
Declining profitability and margins are a result of factors such as vehicle assembly overcapacity, the need to discount less popular models, profit squeezes at OEMs, and price declines for their components, systems, and modules, coupled with higher costs associated with greater product development and logistics responsibilities.