Re: Business Week Mercedes Cover Story

Quite true. Domestically, auto makers earn their profit from financing
and resale rather than the sale of the new car.

Inflating the MSRP to cover maintenance, combined with longer term
financeing could potentially create a long term, highly profitable
revenue stream. However, this business model would require that
consumers change their approach to auto buying. Right now, a car is
viewed as a disposable fashion item. Most drive what is trendy right
now, then dump it in favor of the next hot thing. Migrating to a
longer ownership cycle would require consumers to view cars as
investments rather than disposable commodities.

Best,

JD

.

Relevant Pages

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