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New car models launched! Financial Crisis? Where?
Ok, so I’m confused. Daily, I hear about global recession. I hear about MASSIVE job cuts both internationally and even here in SA. Apparently times are so tough, that Naspers will be retrenching 20% of its printed media staff this month!
Everyday, bank repossesion auctions are packed with goodies to flog and few buyers! Bread and milk prices scare the daylights out of me!
Fair enough, there are rumours that the interest rate will be dropped a few notches VERY soon, petrol prices have come down our currency has VERY mildly recovered. But why, WHY, are car companies launching new models NOW? I just don’t get it? Cars sales have been shocking ALL year long with a distinct 28% drop in sales this year!
- BMW is flogging their new 3-Series,
- Audi launches the new A4, a new S3 Sportback and a the new TTS,
- Ford launches the newest revision of the Fiesta
And thats just off the top of my head. What market research has suggested to these companies, that now would be a good time? Is there a sheer desperation for these companies to get there models out before christmas that they are forced into doing so?
I would have seriously thought that car sales die down as the year ends as people would prefer to take delivery early in 2009 and thereby spare their cars from the overly depreciated 2008 models.
Am I missing something?
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DChetty
Dee Chetty is a South Africa- and India-educated web junkie. Focusing on strategy and new developments, Dee finds himself pushing the limits of innovation with his ideas. Dee loves open-source, mobile technologies and location-driven applications. He is an Apple fanboy & a die-hard Audi fan.
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Travelstart
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Thanks for your comment Dilbert. Like my post says, the last few month
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@Dilbert - Do you see me (iMod) running for Best Tech Blog, yes or no?
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Your site is not even a tech blog? Just like imod, you blog about ever
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Chris M
December 10, 2008 at 8:15 amI heard that Mercedes went from selling just over a couple hundreds vehicles a day to like 66% less. My facts are not accurate, I cannot remember exactly what I was told, but it was a huge drop and I'm not surprised. That said, I concur with what you're confused about!
Wogan
December 11, 2008 at 12:00 amYou know, despite the financial crapfanhittage, there are still people out there with money, positive credit and passive income that account for the 35% still buying new cars. And from the auto companies point of view, if they just stop releasing new models, then their sales would probably fall even further. So for them, I'm sure it's a survival tactic. So granted, they're making less money, but at least they're making money at all - they'd be in deeper trouble if they weren't.