Quote:
Originally Posted by Dimman
Corolla 1ZZFE economies of scale didn't put much of a dent in ZW30 prices.  |
It's ZZW30 actually. You're mixing up your variables as well. I suppose you think if they used the 2ZZGE the cost would have been the same? Plus the MR-S was a J-VIN so had a 5% tariff on it unlike Corollas made in the US. That's $1200 straight to Uncle Sam that would wipe out any economies of scale advantage for the 1ZZ. The target price was higher due to smaller anticipated low volume for a MR convertible. Hence the premium. Depends on what the vendor is trying to do. Pickups are the about the cheapest PoS vehicle you can make but are marked up like crazy due to demand. Hence the massive profits.
[ame="http://en.wikipedia.org/wiki/Price_elasticity_of_demand"]Price elasticity of demand - Wikipedia, the free encyclopedia[/ame]