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View Diary: Sarah Palin attacks Elon Musk (26 comments)

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  •  a "Cadillac" version of the Volt? wrong direction! (2+ / 0-)
    Recommended by:
    viral, Jay C

    Christ almighty, they don't get it at all, do they?!  The Volt is expensive enough as it is, and they think they can increase sales by making an even more expensive version?  During a down economy ... when all the young people most interested in buying responsibly don't exactly have money to burn?  Rich people don't buy economy cars anyway.

    I want a Tata Nano for $1000.  Whoever can build a cheap little city car like that for the US market (safety and emissions standards) and stamp them out fast enough to meet the demand will be the new Henry Ford.

    •  I take it back; this makes perfect sense to them (2+ / 0-)
      Recommended by:
      Jay C, UntimelyRippd

      The fattest profit margins are at the high end, because while people will pay a premium for fancy finishes and extra features, they are a trivial increase in cost over the guts of the car, which are basically the same as the economy models.

      If you see their motive as maximizing profit - with sales only a means to the end - then it makes perfect sense to build bigger and fancier electric cars rather than a 21st Century Model T.

      •  heh -- saved me having to reply. (1+ / 0-)
        Recommended by:

        nobody cares about serving the hoi polloi anymore, since the top 1 to 5% have all the money.

        To put the torture behind us is, inevitably, to put it in front of us.

        by UntimelyRippd on Wed Apr 10, 2013 at 01:41:24 PM PDT

        [ Parent ]

      •  Actually.... (0+ / 0-)

        ....most technology in cars starts out at the high end and works down.  Try to find HID lights on an entry level car.  This is done for several reasons.  First, those buyers are the most likely to want to pay extra for it.  Second, those buyers tend to be more into cars.

        Green technology is particularly susceptible to this.  The Prius is basically a Toyota Corolla with a hybrid drive.  But Toyota concluded (correctly) that green buyers will pay a premium price.  (It's a smaller premium now that there are more than 250k Priuses on the road.)

        One of Chevy's biggest mistakes (a marketing mistake) is that they used the Chevy Malibu as the base for a $40,000 car.  ($32,500 once you factor in tax credits.  Obama is attempting to get the threshold of the number of cars sold before it loses eligibility raised from 250k to 500k and to allow the tax credit to be given instantly by the selling dealer.)  Doing a Cadillac version makes this easier to pull off and has the huge benefit of getting a coveted demographic into the brand, and gets green technology into the hands of a laggard demograhic (Cadillac's current aging customer base).

        All of the US carmakers (well, I have no idea what Chrysler is doing) are using this as their primary strategy now for hitting the 56mpg target while not turning all of their cars into a Prius, which is really not very good value for the money (the price premium dwarfs the fuel savings).

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