Quote:
Originally Posted by Matski
Because USA should be the numbers that count.. right?
Fuckin lol.
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I believe I stated "existing markets" not calling one out in particular. It might be the US this month, might be Germany the next.
The point is that it requires more to capital to enter into a new or expanding market, whether it be to construct new dealerships, factories, spend money advertising, building relationships with local companies to transport their product, and so on.
It is highly probable that it costs more to sell a single unit in a newer market compared to a market already well established. BMW could very well be taking significant losses on units sold in newer markets in order to be competitive. What happens when they spend all this money expanding in China then see a regression similar to the US while the same decline is still occouring in other regions. Balance sheets are screwed and it no longer becomes a sustainable business model.
Fuckin lol is right.