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Over capacity is a problem that has a long tail
Posted by Noel (# 876) (more from Noel) on Sat, 18 Feb 2012 13:34:51
In Reply to: Still lots of problems in the industry., MI-Roger , Fri, 17 Feb 2012 06:36:28
People want cars that have lots of bells and whistle and are durable. So the manufacturers fill the need and ramp up capacity as well. They add automation (and axe some workers) so they can make more cars.

Meanwhile, because the cars are more durable (and because new ones cost so much), there are lots of well-equipped cars out there running well for their 2nd, 3rd, and even 4th owners. That includes a bunch of us Saab-guys.

And except for those who rent (aka lease) their cars, fewer people out of the car-buying population are acquiring new ones. That's the long tail and it won't change quickly. Some manufacturers can work around this, but not all. What we may well see is a narrowing range of models or at least less availability of many models.
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