We all realise the car industry is by far the worst affected. Although used cars are still widely being accepting, dealers are having trouble ridding of the new cars. The whole industry just blames it on the credit crunch and believes a bailout is the right option and will rejuvenate a failing market. But is this the truth or not? Or is there a lot more info lying behind the lights.
Well something needs to be performed about the collapsing market and I can tell you that it is not a government fund. Quickly thinking about it does it really cost manufacturers thousands and thousands of dollars to create a vehicle. People have stated that cars are built in about 30 hours from start to end and cost around $3000 for each vehicle, which undoubtedly ends up selling for a profit of up to 90%.
Is this not the whole truth why this industry is failing? Because they are overcharging? Ok do not get me wrong to design a new concept and promote the new vehicle must cost a bit more. But when it comes to mass manufacturing, these cars are just getting developed and sold. The creators were trying to get alot of profit by charging an arm and a leg and this is why more pricey businesses are struggling, like the BMW.
This is also why cheaper vehicles that do exactly the same tasks such as Scodas and Fords are still thriving in a below average niche. They offer great quality for an affordable rate and manufacturers are still making a profit. I have driven a Ford which infact is a better drive than most expensive cars.
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