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Yes, it's true that the margins were low, which is a strong indicator for competition. However, I think the weakness in electrification and software makes it cl
by ahepp 6y ago
Yes, it's true that the margins were low, which is a strong indicator for competition. However, I think the weakness in electrification and software makes it clear that there's little true innovation. Legacy automotive turned into a stable market, and participants were happy to fight over pennies. Eventually US manufacturers realized they couldn't compete and needed to change, but even then decided to retreat into trucks and SUVs rather than truly innovate.
- the_real_sparky 6y agoIt seems like anyone that had over 50% of the market share of large SUVs and made 30% profit on each one would probably double down and ride that gravy train to the end? https://www.autonews.com/sales/gm-living-large https://www.autonews.com/sales/gm-living-large
- imtringued 6y agoI see ID.3s everywhere. They are more common than any other electric car. They also tends to blend in with other VW vehicles. >However, I think the weakness in electrification and software makes it clear that there's little true innovation. Legacy automotive turned into a stable market, and participants were happy to fight over pennies If you sell millions of cars you can hire a whole team of penny pinchers who will then save your business 10s of millions dollars. Every penny pays for a $100k salary. If anything the semi conductor shortage is causing downstream issues in VW's ability to produce more ID.3s.