Riddle me this

[Bagpuss]

We are in a major recession. Car manufacturers are struggling to sell cars, going to the wall or being bailed out. Yet many manufacturers are significantly raising their list prices, Ford,BMW, you name it. I honestly cannot see the logic behind this, once the scrappage runs out they will be selling even fewer cars (most of the scrappage money went on cheapo cars anyway). There will be even less money in supply this year, so what exactly is the plan? Is it genius? or are these companies being run by idiots?

[suityou01]

We are in a major recession. Car manufacturers are struggling to sell cars, going to the wall or being bailed out. Yet many manufacturers are significantly raising their list prices, Ford,BMW, you name it. I honestly cannot see the logic behind this, once the scrappage runs out they will be selling even fewer cars (most of the scrappage money went on cheapo cars anyway). There will be even less money in supply this year, so what exactly is the plan? Is it genius? or are these companies being run by idiots?

The people that work in sectors thriving from all the bail out cash still have money to burn.

HTH

[Troll]

Is it better to sell fewer cars more profitably or more cars less profitably?

[suityou01]

Is it better to sell fewer cars more profitably or more cars less profitably?

ooh oooh I know this one.

Check out 'the long tail'.

[gingerjedi]

Same with breweries raising beer prices to protect profits whilst the pubs are struggling to get people through the door.

[Bagpuss]

Is it better to sell fewer cars more profitably or more cars less profitably?

In BMW's case they seem to be discounting heavily back down to the prices they raised them from. The sort of trick Currys et al do. Ford similarly, yet now the Focus RRP is in most cases more expensive than the equivalent (and better) VW Golf, which to me is madness as many people in this country don't like haggling at all.

[Platypus]

I think it's down to companies being run by accountants - as a previous poster says, it's about profit margins. If the 'input' price rises at all, some bright spark insists that the 'output' price must also rise to ensure that the margin is maintained.

It'll end in tears!

[Scary]

Is it better to sell fewer cars more profitably or more cars less profitably?

Sell at a loss and make up for it on volume.

[Sysman]

In BMW's case they seem to be discounting heavily back down to the prices they raised them from. The sort of trick Currys et al do. Ford similarly, yet now the Focus RRP is in most cases more expensive than the equivalent (and better) VW Golf, which to me is madness as many people in this country don't like haggling at all.

That's what Volvo did in the early 1990s.

A recent comparison* with BMW prices on the mainland concluded that UK prices had yet to catch up with the devaluation of the pound.

*in the interests of honest reporting, said comparison done down the pub

[Diver]

Sell at a loss and make up for it on volume.

No, That's privatisation