Linked by Thom Holwerda on Fri 27th Jun 2008 15:13 UTC
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Small cheap cars are actually loss makers for both the manufacturer and break even at best for dealer. High end models are the only ones that are reasonably profitable. They only make money out of spares and service. A very minor accident can cost thousands of dollars for grossly overpriced spare parts. Most people in Australia get new cars dealer serviced. However any licensed mechanic can service them (much cheaper) without affecting the warranty.
Reminds me of the 'Smart Car', IIRC, they've been operating as a subsidiary to who ever owns them, and have never made a profit. Before they were bought out, they made losses - IIRC that was the original reason they were bought out, it was a rescue more than anything else.
Petrol stations in Australia are actually in the Coca Cola business. They are mostly owned by supermarket chains. They sell petrol only to get people to make impulse buys of overpriced snacks.
In New Zealand is is a strange combination. For a while some of the petrol companies owned the service stations - but have since sold them off. There are still a large number, however, which are privately owned - which is why alot of those who do 'drive off's' fail to realise that they're not screwing the big oil companies but the small business owner who is also getting shafted with the high price he has to pay to the oil company.





Member since:
2007-01-13
Small cheap cars are actually loss makers for both the manufacturer and break even at best for dealer. High end models are the only ones that are reasonably profitable. They only make money out of spares and service. A very minor accident can cost thousands of dollars for grossly overpriced spare parts. Most people in Australia get new cars dealer serviced. However any licensed mechanic can service them (much cheaper) without affecting the warranty.
Petrol stations in Australia are actually in the Coca Cola business. They are mostly owned by supermarket chains. They sell petrol only to get people to make impulse buys of overpriced snacks.