A - they didn’t hire rejects.
B - they were working on this for over 2 years before they made an announcement. If they did not have a high degree of confidence they wouldn’t have said anything.
And I don’t want to hear how cheap entry level cars creates brand loyalty. It doesn’t. Those buyers will buy whatever is on sale at the time regardless of brand.
Well duh it takes time to put all new vehicles and processes into production. But considering there are apple, Tesla and Rivian alumni all working together there is no reason to think they won’t have some great new ideas and innovations.
It still comes down to what buyers want. Nobody is forcing Toyota buyers to buy more RAV4s over Corollas or Honda buyers to favor CRVs over Civics.
The Koreans have plenty of cheap cars for sale. MFRs are simply giving buyers what they want. Whether that’s affordable is on the buyer not the mfr.
Thats inventory and market mismanagement. If you’ve been paying attention it’s not just about high ATPs. Maverick is a perfect example. Lower ATPs but no big discounts.
Building and selling an affordable EV is one thing. Making a decent profit while doing it is something else entirely and this is where I think the skunkworks team will pay off big for Ford.
Well of course you can’t only look at ATPs. Where did you get that idea? All we’re saying is there are multiple aspects to a business case beyond volume and higher ATPs and lower volumes CAN be a good play u dear the right circumstances.
What you’re not understanding is that lower volume also gives you less overhead. Less capital, less expense and in some cases even fewer factories. Thats a huge advantage.
It is if the niche model generates more profit with less resource commitment.
Porsche is discontinuing their best seller the Macan because the volume is all base models and they have to discount them to sell them. They’d rather sell 1/4 as many Cayenne’s and 911s.