Quote:
Originally posted by Noddy
rmp -- I think my last post overlapped with your previous one, hence my comments in relation to the Fender fitting the premium brand strategy.
While the Defender has well and truly recovered its development costs, it still has one of the highest unit costs in the entire automobile industry. LR have chosen to not address this problem which BMW went to war over until 2008.
I am a little confused. The fact they contine to sell 25,000 units each year, with neglible marketing, would indicate there is a signifcant market to be had, but LR intends to walk away from this market with the new Defender? Or continue to play in this segment with the old Defender? (which begs the question how will the old Defender fit in the model line-up with the 2008 one :? :roll: )
What are the development costs of the new 2008 Defender (I would imagine some significant re-tooling and pressing even though they will use the D3 platform) compared with this obscure market segment. The current Defender market includes: primary producers, military, utilities and the 'purist 4WD-er'. How does LR expect to get a return on the new Defender when they are only catering to the later category which morphs into the bottom end D3 segment?
Toyota have been very successful with 'being all things to all people' and making their vehicle line-up reflect this (using pretty much antiquated technology). LR are hedging their future on playing in some very niche product areas yet still having to carry the cost burdens associated with being an innovator.
Me think it is a very ballsy play and one which you would want steadfast guarantees from Ford on.
If Henry keeps losing cash at the current rate, guess who will come into the sights of the good'ol boys in Dearborn??
25,000 units a year at the moment. As laws change the number of markets that the Defender can be sold into will decrease. So it needs an update. And 25k year worldwide isn't that impressive.