He told me, “At BMW, manufacturing would not question the design for two reasons. First, they would respect the engineers and have confidence in their design and the reasons for it. Second, they would accept the challenge and find a way to manufacture it. They would never say, ‘We cannot do it.’” He continued, “Those problems are unheard of for a BMW engineer.” — Chrysler Engine Block SE Team Member In early September 1997, Jack Smith was trying to decide how to resolve an impasse between the product design engineers and advanced manufacturing engineers. Ten months earlier, Smith had become the project leader for Chrysler’s joint venture with BMW.
So that I don’t think in the mind set of I shouldn’t be spending this much and how some car companies don’t look how much a car will cost you in the long run of having it. Which all are some of the parts that matter in the supply and demand of buying a new car. There are many other factors that play into it to like for instance a lot of car makers make their money by the business demand for the car. For instance like police cars and taxis and many other companies that provide a vehicle. The next thing that plays a part is the real income that car buyers have.
I believe that investing in a car is the second biggest investment one can ever make next to purchasing a house. It is very important to know what model of vehicle you want, the options you want with the vehicle, and what you are capable of spending. Everyone has a dream car, but something else to consider is whether you need that dream that you are chasing and can you afford it. It is important to do some research on the car you want as far as its safety reports and other consumers’ reviews. Along with your research, shop around and do some comparing against other vehicles that you may possible want to buy, or compare prices between the manufacturer’s suggested retail price and the dealer’s price.
Elon Musk (Co-founder & CEO of Tesla Motors) outlines his reasons for deciding to appeal to the higher / premium end of the auto market as “where customers are prepared to pay a premium” (2), but finishes saying that the company's eventual goal is to “drive down market as fast as possible to higher unit volume and lower prices with each successive model” (2). This plan can be seen in action with the successive release of the Tesla Roadster, Tesla Model S, and finally the Tesla Model X – each successive car is lower in price and broader in appeal. Before Tesla Motors appeared in the marketplace there was no brand major / successful brand that focused purely on electric cars,
First, cars should be more efficient because the cost to the consumer may decrease. Although consumers may pay much more for an efficient car, “the total cost to the consumer over the life of the vehicle, which includes the purchase price plus fuel, might actually decrease”(Turk & Bensel, 2011, I-5). Indeed, the total cost to the consumer may decrease the amount of money spent on the vehicle. These savings would come from the purchase of gas, as you can cut fuel consumption in half with an efficient car as compared to a conventional car. With gas prices soaring all the time, the less gas a car needs, the better for the driver.
At the time, Ford tried feverishly to keep up with foreign auto makers that were marketing cars at a cheaper price and better fuel mileage. Ford Motor Company was attempting to make a car that would keep them in the market for the people who could not afford the larger vehicles. Given the competitive nature of the industry and the rush to produce, Ford never released vital information that included information like that eight out of the ten Pinto models exploded after being impacted from the rear. Ford Vice-President, Lee Iacocca determined that it was too costly to do the
Therefore the Prius had been consolidating its status as the dominant green car in the world, even the other green car with the different brand nameplates as BMW could not exceed it. Intermediaries: The second-generation Prius sold in United States in 2004 and gained a runaway success. During the period, many Toyota dealers got price premiums of up to 5,000 dollars over sticker price for the Prius, which was also a good way to promote and advertise the Prius. Q2. Outline the major macro-environmental factors – demographic, economic, natural, technological, political and cultural - that have affected the Prius sales.
Development The poor market performance of the Smart for-two could have been cause by a sum of different factors ; among them, analysis show that during the time of the launch of the Smart for-two the sport utility vehicle was one of the larges competitors in the market and consumers in the US where not ready to sacrifice size for the sake of saving money at the pump. Another factor could be appointed to the highly competitive compact-car segment and the costly restructuring to reduce Smart’s fixed cost. These factors hurt the brand even thought that its global sales had been growing steadily. Conclusion. It seems that the innovative and progressive thinking of Mercedes Benz was a little to early for market assimilation; Since at the time the European market demand for a smaller vehicle to tackle the narrow streets differ from the American consumers demands which at the moment favor what the SUV'S had to offer; size over savings.