Well, the reason is because auto manufacturers are notorious for chasing volume, and still are.
For example, although they're not a luxury marque, VW specifically (not the VW group) decontented their cars in what is referred to as the "beigekrieg". By decontenting -- and then drastically lowering the price -- of the Jetta and Passat, they are gaining significant volume to meet the goal of increasing U.S. unit sales from 250,000 a year to 800,000 a year. So far they've managed to increase it to > 400,000 a year.
Why is Audi bringing over the A3, BMW the 1 series (though that's not gone terribly well) and FWD cars, and Mercedes the FWD CLA? These are cars at lower price points, meant to increase volume and to get new customers into the fold of the brand. On the entry-level luxury market, buyers are price sensitive. Not as price sensitive as the mainstream compact and mid-size sedan markets (who have been decontenting cars to keep prices from moving), but still price sensitive. If the cars get too expensive, or if times get tough, these buyers abandon their plans first. Regardless, all three marques are seeing record sales in the U.S.
Even Porsche, one of the most profit-oriented marques on the planet, has the sub-Cayenne crossover being launched at the L.A. auto show. It may break the "we make at least $10K on every car we sell" informal rule for the first time in over a decade. Why? Volume, which admittedly, allows it to fund other versions (and entirely different) of existing sports cars which bring in very high margin.
The only manufacturer I can think of that's genuinely attempting to be exclusive is Ferrari, who is now trying to limit global sales to 7,000 vehicles per year, which will raise prices.
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Regardless, I think Tesla's strategy is the correct one. To say it worked for Porsche is an understatement -- hell, they used it to nearly buy VW from under the planet's nose.
For example, although they're not a luxury marque, VW specifically (not the VW group) decontented their cars in what is referred to as the "beigekrieg". By decontenting -- and then drastically lowering the price -- of the Jetta and Passat, they are gaining significant volume to meet the goal of increasing U.S. unit sales from 250,000 a year to 800,000 a year. So far they've managed to increase it to > 400,000 a year.
Why is Audi bringing over the A3, BMW the 1 series (though that's not gone terribly well) and FWD cars, and Mercedes the FWD CLA? These are cars at lower price points, meant to increase volume and to get new customers into the fold of the brand. On the entry-level luxury market, buyers are price sensitive. Not as price sensitive as the mainstream compact and mid-size sedan markets (who have been decontenting cars to keep prices from moving), but still price sensitive. If the cars get too expensive, or if times get tough, these buyers abandon their plans first. Regardless, all three marques are seeing record sales in the U.S.
Even Porsche, one of the most profit-oriented marques on the planet, has the sub-Cayenne crossover being launched at the L.A. auto show. It may break the "we make at least $10K on every car we sell" informal rule for the first time in over a decade. Why? Volume, which admittedly, allows it to fund other versions (and entirely different) of existing sports cars which bring in very high margin.
The only manufacturer I can think of that's genuinely attempting to be exclusive is Ferrari, who is now trying to limit global sales to 7,000 vehicles per year, which will raise prices.
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Regardless, I think Tesla's strategy is the correct one. To say it worked for Porsche is an understatement -- hell, they used it to nearly buy VW from under the planet's nose.