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Technology Stocks : Automobile technology and business management
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From: Arthur Tang12/22/2006 4:39:31 AM
of 44
 
Build up brand recognition is quite painful. It generally took 5 years to build up to maximum sales and production. Chrysler 300 took 5 years to come back from the 1950's reputation. Ford focus took 5 years to reach 430,000 cars per years sales. Whereas Escort had consistant 450,000 customers who are loyal and identified themselves as Escort users.

GM Chevy had Cobalt and Aveo to build up as brands that will produce 450,000 cars per year. Malibu will sell as usual.

So, if brands change stopped GM and Ford from continue to hold their customers, it will take the remaining of the 5 years to build back their market shares, Taurus is lost and Focus still can do 450,000 units next year,

Dealership build up will help, but it will still have to pay for brand development. Advertizing will help shorten the 5 years needed.
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