Quote:
Originally Posted by GregA
True. The lifecycle of current models will be a bit shorter - since quicker shift to new platforms will allow reaching better profitability than today.
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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.