Yes all manufacturers cut corners, I agree.
Lets take a golf for example. In 5 years the prices have stayed pretty much the same.
So if the manufacturing price stayed the same; they are absorbing the cost. In order for their profit margins to stay the same - the price of manufacturing has to come down - so they cut more corners
Not necessarily. Manufacturers are consolidating, with for example Volkswagen Group (VAG) consisting of many brands. So you now get essentially the same car sold under multiple brand names with minor changes, reducing development costs. Also VAG, and I assume others, are sharing as many components across cars as possible. They talk about a common floor pan, with changes made to suit each model, further reducing costs. And it is not uncommon for separate companies to collaborate on a car, such as Fiat (500) and Ford (Ka).
As far as I can tell the VW Up spanks the old style Ford Ka in all aspects, except for resemblance to a teapot, and yet the new non discounted Up price is the same as the heavily discounted Ford Ka price from 10 years ago, assuming ~3% inflation.
|