Posted on Oct 25, 2010 - 10:51am by admin in Economic Waste
The automobile is the ultimate corporate capitalist product for a host of reasons. Among these is the fact that the car itself can serve as a Trojan Horse for duping prospects into making profoundly stupid but highly profitable extra purchases.
To wit, this report from Bloomberg Business Week, which elucidates one of the main reasons why Ford is about to post record profits in the middle of Great Depression III:
“Ford was among the first to recognize that making money is more important than moving the metal,” Johnson said. “There’s now a general level of pricing discipline across Detroit, which is leading to higher average transaction prices.”
The Fiesta subcompact, which went on sale in the U.S. in June, is fetching $3,000 to $4,000 above its $13,995 base price because buyers are ordering options such as leather seats, Pipas said. The Fiesta is commanding a higher average price than Honda Motor Co.’s Civic and Toyota Motor Corp.’s Corolla, Ford said.
Buyers are [also] paying more on average for Ford vehicles as the company introduces new…features such as voice-activated phone and stereo controls.
In other words, Ford finds itself enjoying renewed pricing power because it is using its automobiles as platforms to sell massively marked-up trivialities such as leather seats and (extremely dangerous) electronic toys.
And, in a hilarious note that speaks volumes about the myth that high social standing and academic credentials are signs of underlying intelligence and thriftiness, catch this explanation for it all:
George Pipas, Ford’s sales analyst, said in an interview. “People buying Fords today are generally more educated and affluent and they want and are willing to pay for nicer Fords.”
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