Originally Posted by AnalogMan
I have no idea what Toyota's profit margins are on the Supra and 86, but I would bet they're significantly higher on a $50,000 car than a $30,000 one. Even if the profit percentages are similar for both (since they're each bought from someone else, BMW and Subaru respectively), there's an element of the fixed cost to build the car. Such as, it might cost $20,000 to build a $30,000 car, and perhaps $30,000 to build a $50,000 car. So from a purely financial perspective, they probably make a lot more on each Supra sold than an 86.
So, just like Porsche with the 911 and Cayman, Toyota won't want to risk losing a Supra sale to an 86 if buyers see them as too close. Toyota is a completely financially driven company, and will always do whatever makes them the most money.
As an aside, way back in 1990 I interviewed for a job in new product planning with Toyota (in California). Everyone I met with proudly pointed out to me that they were not car enthusiasts, they were strictly business people. They told me about the decision-making process, how there was a 'right way', a 'wrong way', and the 'Toyota way' of doing things, and everyone there must always do things the Toyota way, which meant strictly according to objective financial metrics.
I didn't get the job. The reason they gave me was they were concerned that I was 'too much of a gear head', and that I would let passion and emotion get in the way of making strictly financially-based decisions the Toyota way. Imagine that, a car company not wanting to hire someone because they liked cars too much.
This approach clearly works for Toyota, as they are the largest and arguably most successful car company in the world. But it doesn't always result in the kind of cars enthusiasts want.
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