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Old Jan 3, 2010, 07:04 am   #3 (permalink)
Charlatan
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Location: Cape Town South Africa
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Tennis approach

I haven't heard much recently from the auto market, maybe they have become old news, or are all dead? Anyways, I need to try to help them out of their rut.

The first solution I remember proposing is clearing the bottleneck at the dealerships. It is a bottleneck because there are more cars coming through than people are buying, and the floors are full, so there can be nothing more coming through. If they were to buy their own cars back, in bulk, then they could reprocess them in the furnaces and make new models witht the material. If you pay a hundred percent for one car, then you would pay about ninety percent for a hundred cars, then you would pay about thirty percent for a million cars? That is about break even point or so, for the whole amount, then reprocess, resell, etc.

Of course with my new engine that doesn't use fuel you could cut costs of the car to a shard of what it was, as the engine is the costly part of the car. So you take the new engine, which works on coils and pressure build up in the coil to propel the wheels, and the rectangulr turning devices instead of costly pistons, and you have a dirt cheap engine, and therfore dirt cheap car. You could build one of those big truck things that everybody goes crazy for at a fraction of the cost, bringing car costs down, and therefore retail prices go down, and people acn afford the new cars. EVeryone makes huge profits too!

But, as a new approach, how about if we were to have the manufacturer buying the cars in bulk, then selling them back to the dealer at a reduced cost? This way they could make a car for x, and sell it for x + y, then buy it back for less than what they sold it for, making a profit, then the dealer buys it back for less than what they sold it for, making a profit, etc. and the price goes down, eventually so low that it is a steal to the common person. All the while they are making profits all over and then they sell their cars. Simple 'tennis' approach, drop prices, make profit, sell cars.


Going to my destruction!
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