Tag: scale

By on February 22, 2013

We’ve discussed the importance of scale countless times on this website. La Tribune takes a brief look at Ford, Volkswagen and PSA and the different ways they are working to achieve economies of scale in one of the toughest markets in the auto industry; the C-Segment.

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By on November 1, 2012

Ben Oliver’s essay in Automobile Magazine might be the best one I’ve read on Lotus and their existential predicament. While my own pieces are full of vitriol and cursing, Ben’s eloquent prose outlines the brand’s biggest problem; lacking the necessary volumes, they need to take advantage of economies of scale and high margins to survive as an auto maker. Sports cars that compete in the Porsche Cayman’s price range and performance envelope aren’t popular with buyers nor do they generate the volumes or profits necessary to keep an independent sports car maker afloat. The proposed option, a series of high-end sports cars built off a modular platform (similar to the Lotus-derived Aston Martin VH architecture) was met with little fanfare. The economic principles were sound, but the proposal alienated the faithful. Over to you, Best & Brightest.

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