Re: Over capacity is a problem that has a long tail - Saab General Bulletin Board - Saabnet.com
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Re: Over capacity is a problem that has a long tail
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Posted by Noel [Email] (more from Noel) on Sun, 19 Feb 2012 10:11:02 Share Post by Email
In Reply to: Re: Over capacity is a problem that has a long tail, TML [Profile/Gallery] , Sun, 19 Feb 2012 09:05:36
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I'm not sure a lot of manufacturers need to go away, but the number of model lines each offers could certainly be reduced and the total number of cars produced could drop as well.

The assumption on the part of the automakers is that they have to offer products in as many niches as possible so they have a better chance of keeping a customer from going elsewhere. But with more durable cars and the escalating costs of the things there's less and less reason to get rid of a car so new cars go unsold.

Us Saab guys who run cars for 150K or much longer are exceptions, but lots of people don't turn a car now until it hits 100K. A long time between visits to the new car showroom, and lots of time to get the wants for something different.

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