Quote:
Originally Posted by Polyal
That business model works OK if you have market share, its not different to what the Japanese did when they started out. Come in cheap, build your base and then start looking at profit; it makes sense.
But once you move away from turn over to profit driven/margin then yoru risk is higher.
I think Ford in this country and the move away from Mazda product sharing is not a bad example. Fords small car range deserves to sell better but its just not getting the numbers. Im not privy to their P&L but they must be struggling if it wasn't for the ranger and mustang and the latter is risky.
Seems this next car will be the 6 replacement? They would be nuts to start Eunos again it will only dilute the brand.
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Ford's profit is better because they never sell anything at a loss these days. That's the whole point of the higher RRP's. If it's not profitable it doesn't come here, hence why the Fiesta ST is the only version of Fiesta they are selling.
The days of chasing sales figures by selling at rock bottom prices are over. All that gets you is red ink. It's all about being solidly profitable now, or it doesn't come here.