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naraburns  nihil supernum  1yr ago (text post)   4073 thread views

Small-Scale Question Sunday for January 29, 2023

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They are effectively doing this by only keeping top trims & high margin cars in stock.

They don't just want to make short term profits, they want to permanently change buying behaviors.

If there is a shortage then prices are below the market clearing price. Why are they and why do manufacturers not want dealers to charge those market clearing prices?

Because the automobile industry is in the middle of an existential disruption from new electric car manufacturers. They would rather maintain their market position than make a few extra dollars in this process. The scariest proposition is someone buying another car.

3 low margin Camrys is better than 2 high margin Camrys + 1 Tesla/Rivian/etc. sold. They want to starve out the new players.

out the new players.

so it's an anti-competitive trust?

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