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I'll respond piece by piece. I'm no industry analyst - this is all opinion:
"how come Hyunday was able to offer more equipment than any other competitor at a fraction of the cost years ago? what's the story today? they became reliable and now compete head to head with all the other cars in their class at almost the same cost...and they do sell..."
Lower labour cost (Korea) had lots to do with it - I wonder if there was some subsidation happening there too - Hyundai is a huge industrial conglomerate and can afford to operate a relatively small unit (Hyundai cars) at a loss to generate a market. They've now developed their manufacturing technology - modern factories etc. to produce better quality goods at lower cost - so they compete well with Japanese mfrs. They are still significantly less expensive than similar Japanese vehicles here in Canada (eg. Sonata at $19k vs basic Accord at $25k).
"You don't pay more for stuff...a stipped down Audi is still more expensive than a loaded Accord...not to say that one is better than the other."
But a stripped Audi has pretty superior features to a loaded Accord... leather, power everything, Quattro, etc. The Audi costs more and has more 'stuff', the Accord will be more reliable.
"You are right saying that more expensive materials and newer technology makes it into more expensive cars, but the root of the question is why do they put those materials there? the obvious answer is that they should be better in some sort of way (reliability, feel to the touch, longevity, etc)."
Why? Because they help sell the car at a higher price (higher profit). They feel better, look better, add snazzy features (nav systems, Xenons, electronic controllable suspensions, etc.). I don't suppose "longevity" is much in the equation other than considering that it needs to last long enough to get past the warranty and impress the owner enough that they'll not object to buying another.
"If you had two of the SAME things, and they asked more money for one, would you expect that one to be better in a way?"
I would expect it to be "better" in *some* way, not necessarily reliability/longevity. There are many definitions of "better" at similar price points. If my definition of "better" is quiet and soft ride, well then I'll buy a big Lincoln rather than a BMW, and put up with sloppy handling. If I want super acceleration and handling, I might buy a Porsche rather than a Mercedes and put up with the noise and rough ride. If I want superb comfort, great handling, space, and safety at a price I can afford, I might buy a Saab rather than an equivalently-priced Honda, and put up with higher maintenance costs.
, Mon, 9 Jun 2008 07:23:18, Mon, 9 Jun 2008 08:33:09
, Tue, 10 Jun 2008 08:05:34, Sun, 8 Jun 2008 19:27:00
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