Quote:
Originally posted by Hudson
But not when sales of the less expensive product (read: less profitable) eats away at the more expensive product's (read: more profitable) volume. If it's all incremental volume, then I agree. But I don't see how this will be even close to all incremental volume.
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Like I said it all depends on whether you think there would be sales cannibalisation, which is where we’re disagreeing. You think there will be, I think it will be so small its negligible. Incremental volume would be great, but BMW cant sell 200 thousand more cars p.a. without diluting their image, which is why they need a different brand, as they’ve done with the Mini. And I don’t see the problem with giving away some margin to grow volume. It comes down to earnings growth and this is a method of achieving it.