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Politics : Formerly About Advanced Micro Devices

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To: Tenchusatsu who wrote (611940)5/19/2011 10:55:45 AM
From: Alighieri  Read Replies (1) of 1578714
 
I still don't like the price. $40K before tax breaks. That could just be the result of limited supply, but it also prices the Chevy Volt out of the mainstream. It makes no economic sense, considering that the main draw is the gas savings.


I agree, but don't underestimate the marketing value of a car like the volt...they must have made a calculated decision to keep the price high, first because the effective price is reduced by a substantial credit (we can argue about that another time), and second because they are probably trying to balance a mix of limited supply and novelty demand and not leave money on the table at the same time, and one can argue about the need for a larger_loss leader...in any case they clearly understand the need for cost reductions...and let's not forget that it took toyota a few years to turn a profit on the prius...

Al
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