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Technology Stocks : The Electric Car, or MPG "what me worry?"
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To: John Koligman who wrote (343)9/17/2008 8:44:56 PM
From: RetiredNow  Read Replies (1) of 17569
 
Pricing will remain high in low volume. Once they scale up the manufacturing process, then prices come down. Economies of scale. I imagine that GM will be selling this thing at a loss for a couple years, before they reach volumes that can make it profitable. Plus, they will have to continue to invest to bring part costs down. That's what Toyota does and it has worked for them for a very long time. The Prius was not profitable when it was first introduced and remained that way for 5 years. Now look at them.
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