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> Basic ICE cars are essentially sold at cost, sometimes as loss leaders, because the manufacturers make a long-tail of money supplying parts and maintenance fo
by radpanda 2y ago
> Basic ICE cars are essentially sold at cost, sometimes as loss leaders, because the manufacturers make a long-tail of money supplying parts and maintenance for the cars over their lifetime
Not just that but fuel economy regulations, (like CAFE in the USA) mandated average fleet fuel economy that must be met for automakers to avoid fines. GM had to sell a bunch of Cavaliers to be able to sell a bunch of (profitable) Silverados and Suburbans. With hybrids and EVs these days, regulations no longer favor the small car.