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How does that make sense? On paper they just lose the revenue of the Fit without gaining any new revenue elsewhere. That’s just a loss. It takes some magical th

How does that make sense? On paper they just lose the revenue of the Fit without gaining any new revenue elsewhere. That’s just a loss. It takes some magical thinking to argue that these lost customers will move over to the more popular model, a qualitatively different car.

ummonk 6y ago
What I got from that comment is that they're supply constrained, and gain new revenue elsewhere by producing more of the HR-V.
- monadic2 6y ago
  Why would they think that demand of the HR-V is likely to increase if they remove the fit? I understand removing unprofitable lines, but if it’s making money why fix something that ain’t broken? If they’re worried about competing with themselves, they’ve blatantly told you as a customer the car you want is too desirable for you to have it. Wtf?
  - ytdytvhxgydvhh 6y ago
    They’re supply constrained on both Fit and HR-V. The factory is going all out, but building a new factory isn’t a short term thing. So they can build all of the more profitable HR-V and sell every one or they could mix in some less profitable Fits.
ytdytvhxgydvhh 6y ago
If you’re Honda and you’ve got a factory that can make 100000 cars a year, would you rather make 100000 cars that make $2000 profit? Or 50000 cars that bring $1000 profit and another 50000 cars that bring $2000 profit? If you’re Google and you can only find N top notch software engineers, do you want to put any of them on marginally profitable projects?
- monadic2 6y ago
  I mean, you still need to convince people to buy the cars to get any profit, so I'm not sure what your point is. >If you’re Google and you can only find N top notch software engineers, do you want to put any of them on marginally profitable projects? Presumably this depends on what kind of work is needed. I've never worked at a place where profit is correlated to engineering talent, including and especially at Google. Again, I'm not sure what point you're trying to make.

ummonk 6y ago

What I got from that comment is that they're supply constrained, and gain new revenue elsewhere by producing more of the HR-V.

monadic2 6y ago
Why would they think that demand of the HR-V is likely to increase if they remove the fit? I understand removing unprofitable lines, but if it’s making money why fix something that ain’t broken? If they’re worried about competing with themselves, they’ve blatantly told you as a customer the car you want is too desirable for you to have it. Wtf?
- ytdytvhxgydvhh 6y ago
  They’re supply constrained on both Fit and HR-V. The factory is going all out, but building a new factory isn’t a short term thing. So they can build all of the more profitable HR-V and sell every one or they could mix in some less profitable Fits.

ytdytvhxgydvhh 6y ago

If you’re Honda and you’ve got a factory that can make 100000 cars a year, would you rather make 100000 cars that make $2000 profit? Or 50000 cars that bring $1000 profit and another 50000 cars that bring $2000 profit? If you’re Google and you can only find N top notch software engineers, do you want to put any of them on marginally profitable projects?

monadic2 6y ago
I mean, you still need to convince people to buy the cars to get any profit, so I'm not sure what your point is. >If you’re Google and you can only find N top notch software engineers, do you want to put any of them on marginally profitable projects? Presumably this depends on what kind of work is needed. I've never worked at a place where profit is correlated to engineering talent, including and especially at Google. Again, I'm not sure what point you're trying to make.