Quote:
Originally Posted by JamesNoBrakes
Things cost money to make. They won't be selling them at a loss, unless we are talking a few that are on-hand at a dealer, but they, just like everyone else, are going to do everything they possibly can to not do this, most likely it'll be the models that no one wants, like some ugly BMW GTs and 4cyl cayman. The manufacturer will right-size with demand, so instead of producing current-demand amount, it'll be right-sized to the amount of demand that actually exists. Prices may go up due to this, but as long as they can streamline manufacturing, by laying off people, selling assets, heck, going into bankruptcy, then that's what they'll do. They won't sit around and sell a car for 40K that costs 50K to make. Ain't going to happen.
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Sorry but yes it will. I’ve worked fir a few of the biggest companies in the world. WE DO NOT PREP FOR THIS! Our fixed costs are enormous, and although we have a ridiculously healthy balance sheet we’re hoarding cash because revenue is 100% going to go down. We’ll do our best to sell our products on strategy but after 3 weeks we’ve already seen our margins drop. As this goes on we’ll fully abondon margin altogether to protect top line sales and share of market with the hope that we can get back to where we were before this happened but in the meantime we’ll reduce prices as much as is required to keep the lights on. Price increases are coming wherever the market thinks they can sustain them but that’s not today or anytime soon. The optimism is strange, people ge really think the worst, the time fir that is now and everyone thinks the best!! It may not effect any of you, I hope it douesn’t but this will have a negative impact globally for a tonne of people. Stay safe and for the love of god stay away from others.