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Cars are currently used beyond 10 years which is more than the 3 cycles talked about here. Almost reads like a scheme to cut of the long tail.
by heisenbit 5y ago
Cars are currently used beyond 10 years which is more than the 3 cycles talked about here. Almost reads like a scheme to cut of the long tail.
- bnt 5y agoMore like keeping cars which are intended to be leased/rented in service longer.
- magicalhippo 5y agoAnd make Toyota more money. At least here, these leased vehicles are sold as second-hand, and often sold once or twice again after that. This works fairly well, and most vehicles live a fairly long life. However Toyota only really makes money on the first sale. By taking the cars in and refurbishing them, Toyota can make money on the second and third sale. Good thing is this might make cars be around for longer, which can have environmental benefits. However one potential downside is that older cars are usually fundamentally less safe than newer cars, so it might be detrimental to Vision Zero[1]. I doubt the refurb would drastically change safety features like crash structures, number of airbags and similar. [1]: https://en.wikipedia.org/wiki/Vision_Zero https://en.wikipedia.org/wiki/Vision_Zero
- Normal_gaussian 5y agoToyota injects itself into second and third sales via helping their dealers do countrywide reselling and then offering finance products on it. I assume most manufacturers do similar. When you buy through this you get a Toyota warranty and guarantee, as well as a serviced vehicle and confidence around inspections/descriptions. The remanufacture stuff sounds a lot more like they reckon there is an ability to increase the quality of these resales - which is highly likely. BEVs want battery replace/refurbs but most second hand vehicles have a snag list that is too much of a hassle for dealers to handle, but isn’t that expensive. They are also then given upselling opportunity (towbar / reversing cam / etc.) which would add new margin (and many buyers want). Of course the main driver is that we are going to soon have large scale sticker shock - going from ICE to EV is £££, particularly for second/third owner. To lose market share and finance here in the next two decades is likely for any manufacturer, and market share is their main value prop for shareholders.
- hijinks 5y agoit really sounds to me that car companies want a subscription model. Where I will never be able to own a car but I rent one for the rest of my life.
- est31 5y agoYeah this is what the great reset is about. It has advantages and disadvantages. Advantage is less incentives to produce short lived products. Disadvantage is that individuals have way less control over things.
- jsodw 5y ago“You will own nothing and you will be happy.”
- ghaff 5y agoIf we ever get to actual autonomous driving, that seems inevitable. A manufacturer can't be expected to own liability unless they also own maintenance and upgrades.
- SV_BubbleTime 5y agoDon’t worry, they’ll find a way to make it subscription based. But also, making the mfg own liability for self-driving is a really interesting topic that will change automotive. As an automotive EE, I’m much more skeptical about autonomous than almost every other person here, but I look forward to being driven to work just the same.
- ghaff 5y agoOh, I'm as skeptical as anyone--at least outside of certain defined conditions like interstates in good weather. But I don't see how manufacturers can't own liability (or something like the vaccine pool). If you sell me a car that's billed/approved as fully autonomous (fully, not in the Tesla FSD sense), it sure as hell isn't on me if it kills someone.
- 5y ago
- tonyedgecombe 5y agoGoodbye bangernomics. Let's hope we do something about the dire public transport in the UK to fill the gap.