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Re: Catering to used car buyers-parts
> I think it important to remember that any car manufacturer has the
> advantage in producing OEM parts. They have already paid to gear up for
> production. To stock their used parts line, all they have to do is run
> their manufacturing line at the time of original production for so many
> extra months and warehouse the extra inventory. Even if they stock
> parts by restarting production lines now and then (which I doubt), they
> still have all the tooling and don't have to start from scratch.
Except that the tooling wears out, and they need their factory space for
current production. It's a heck of a lot cheaper to make 10,000 (or
100,000!) of something while it's current than to dig up a bunch of old
tools, figure out how to use them again, and make 100 pieces at a time.
But I agree with the assessment that while repairs and parts must run as
a profit center for a dealer, new car sales don't - often they have to
meet quotas, compete with other cheaper cars, etc.
Used cars are still cheaper. Late 80's Audi 5k's are just an example of
one used car that is very expensive to maintain due to certain systems
failing every few years...
--
Huw Powell
http://www.thebook.com/human-speakers
82 (+/-) Audi Coupe