Earlier this fall, word arose that Fiat Chrysler had resurrected a practice from the bad old days of the company — a sales bank of unallocated vehicles churned out by over-productive factories and pushed on dealers with little use for them. The company claimed otherwise, saying that its new “predictive analytics” system was simply in the process of being refined to better guide the flow of certain models and configurations to dealers.
With 2019 nearly at an end, unordered inventory is once again on the rise, Bloomberg reports. And not by any small amount, either. In response, FCA is reportedly pulling out all the stops to get these vehicles into consumers’ hands before 2020.
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- Jwee I think it is short sighted and detrimental to the brand. The company should be generous to its locked-in user base, treating them as a resource, not a revenue stream.This is what builds any good relationship, generosity to the other partner. Apple does with their products. My iPhone is 5 years old, but I keep getting the latest and greatest updates for free, which makes me feel valued as a customer and adds actual value. When it is time for a new phone, Apple past treatment towards me certainly plays into my decisions (as did BMW's - so long subscription extracting pigs, its been a great 20 years). Imagine how much good will and love (and good press) Polestar would get from their user base if they gave them all a "68 fresh horses" update overnight, for free. Brand loyalty would soar (provided their car is capable).
- ToolGuy If I had some space I would offer $800 and let the vehicle sit at my place as is. Then when anyone ever asked me, "Have you ever considered owning a VW?" I would say "Yes."
- ToolGuy In the example in the linked article an automated parking spot costs roughly 3% of the purchase price of the property. If I were buying such a property, I would likely purchase two parking spots to go with it, and I'm being completely serious.(Speaking of ownership vs. subscription, the $150 monthly maintenance fee would torque me off a lot more than the initial acquisition cost.)
- ToolGuy "which will be returned as refunds to citizens of the state" - kind of like the Alaska Permanent Fund? Make the amount high enough and I will gladly move to California to take advantage (my family came close to moving there when I was a teen, and oodles of people have moved from CA to my state, so I'm happy to return the favor).Note to California: You probably do not want me as a citizen.
- ToolGuy Nice torque figure.