Quote:
Originally Posted by DAEMANO
Now try comparing Scion sales to other Niche brands, what are the thoughts about killing the ones under Scion? Why not kill off Mini, Volvo, Land Rover, Porsche, Fiat, Jaguar, Maserati, and Bently? Total sales volume is not always the sole objective.
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Profits are the sole objective in every business. You are listing premium brands that make significantly higher profits than Scion. Scions are sold at the lowest possible prices with a no haggling policy at an attempt to cater to younger consumers. I've read (not sure if it's true) that Toyota makes only a few hundred dollars in profit off of each Scion sold. Compare that to say Rolls Royce, Bentley, or Porsche and then look at the differences. Those cars have options with options added on which are pure profit. A few well optioned 911's can easily bring in more profit than a whole fleet of Scions.
Scion doesn't pull its own weight compared to those niche luxury brands. Look at what GM revealed about Saturn. During the 20+ years of its existence, it did not make any profit. It cost GM money to keep the brand alive which is something you don't want to do when you're running a business.