View Single Post
      11-04-2009, 08:08 AM   #20
jrougeux
Private First Class
jrougeux's Avatar
United_States
10
Rep
149
Posts

Drives: 2006 330i - 6SPD ZSP ZPP
Join Date: Dec 2008
Location: Louisville, KY

iTrader: (0)

Quote:
Originally Posted by GregA View Post
True. The lifecycle of current models will be a bit shorter - since quicker shift to new platforms will allow reaching better profitability than today.
What?!? The most expensive thing you can do is constantly create new models. The cost of design, engineering, and developing the tooling to create a new car is extremely expensive. If you only amortize these costs over a few years, that's not a great strategy for profit margin.

Now if you can sell more cars by updating the design more frequently, and those incremental sales are enough to surpass the development costs, then that's another story.
__________________
2006 330i - 6MT ZSP ZPP
Appreciate 0