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Politics : Politics of Energy
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To: RetiredNow who wrote (27374)8/2/2011 9:35:04 PM
From: TimF  Read Replies (1) of 86356
 
hey told me that's fine, because they are selling every vehicle they have been allocated and that demand far outstrips supply.

That supports "supply is low", but it does nothing to respond to the idea that perhaps supply is being held deliberately low since at least for now producing the Leaf may be unprofitable even in marginal terms (its certainly unprofitable in total costs for the design and production start divided by total sales, but by that measure any new design in unprofitable in the beginning, esp. an ambitious new design).

Assuming marginal production of the Leaf is profitable (at the price they are selling for), low supply could still be a deliberate strategy. It makes the car the hard to get, rare, "cool" item, rather than the overpriced loser sitting on the lots.

This is exactly what happened with the Prius at first. Demand was far outstripping supply and cars routinely sold higher than MSRP.

The Prius wasn't selling only a few hundred models at this point. Probably because it cost a lot less and had much better range.
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