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The ugly reality of long product development cycles
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Posted by MI-Roger [Email] (#882) [Profile/Gallery] (more from MI-Roger) on Thu, 9 Apr 2009 03:45:37 Share Post by Email
In Reply to: Nero fiddled while Chyrsler burned, newwithasaab, Wed, 8 Apr 2009 20:22:46
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Although many people claim to have seen the end of the SUV gravy train prior to last summer's rapid spike in fuel prices, the truth is the real death of the SUV craze is less than 12 months old.

Combine that with an automotive product development cycle that is 24 to 30 months long when accelerated, and you have will have products such as Chrysler's new SUV. A new vehicle hitting the market just after people have decided they no longer want that to buy anything in that genre.

I foresee that SUV's and pick-up trucks will survive long into the future, but they will no longer be foolishly used as the family grocery getter. They will return to their prior status of specialized work or specialized leisure vehicles, hauling light cargo and oversized trailers.

This same long product development cylce risk impacts other businesses too, commercial aircraft builders is one quick example.

posted by 198.208.25... 
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Saabs owned:
2008 9-5 Aero Sedan, sold at 227K miles
2006 9-3SC 2.0T - Wife's daily driver
2000 Viggen Convertible - Sold May, 2022
1964 Quantum IV Formula Car - Retirement project
2000 9-5lpt Sedan, sold at 318K miles
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