makes sense to me. Follow the money.
Yes!
Somewhere along the line they had this ah-ha moment. Why return to the old routine of killing ourselves to make as many cars as we can to keep dealers flush with so many vehicles they have no choice but to wheel & deal & ultimately give huge incentives to get rid of the excess in advance of next year’s model? Isn’t it far easier to make and sell fewer cars at a greatly increased profit margin & come out ahead? They didn’t come up with this model, it was essentially foisted upon them and all of us by covid, all the manufacturers did was notice it & seize the opportunity it was. It costs them less to produce fewer cars &
if the profit margins not only hold but increase, voila, it’s the perfect scenario. Of course WE all get screwed in the process, but that’s not their concern. This whole mess has fucked up the used car market as well as people turned in that direction to find a car they can actually afford, even if they’re more than they’ve ever been.
What an absolute clusterfuck this whole thing is.
My long-term prediction on what upends this whole paradigm is Elon Musk.
While the legacy auto makers are stepping all over their dicks trying to figure out how to make an EV that they
don’t have to take a $20,000 loss on to sell, Musk, who cracked that code some time ago, is already profitable, and is quietly in the process of producing (at some point in the not too distant future), a 25k Tesla Model 2 for the masses. If/when he puts that thing on the market, say goodbye to the big three because he’s gonna suck all the air out of the room.
I’m sure they’ll cling to life pumping out their tech-heavy ocean liners on wheels for the minority of people that want and can afford them, like
@Zorba , but the demand will decrease as people won’t be forced to buy these ridiculous monsters anymore. If that prediction comes to pass, I won’t shed a tear for them, because they’re willfully fucking us all right now.