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Originally Posted by Dadhawk
I think its debatable that the Corvette qualifies in the loss-leader category either. They obviously build it in quantity where they expect it to make money. Maybe 50 years ago, but not now.
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Oh, yes, definitely it fits, not because it loses money, but because it doesn't make nearly as much money as it could.
GM uses the Corvette as a development platform for technologies. The development of a new Corvette costs a LOT more than the development of any other car they sell. They use it to develop engine technology. They used it to develop the water injected steel frame molding that found its way into trucks. They spare very little expense on the car.
If they really viewed it as a profit center, they would spend as little on it as possible to pull in their target consumer. They don't. They treat it as a loss leader that's so successful that it doesn't actually lose.