Quote:
Originally Posted by rvoll
I don't know the actual numbers, but I don't believe it is as trivial as you make it seem. In addition to the cost of the parts themselves which are not that great, you have parts inventory, dealer car inventory, lower volumes of both transmissions (which increase unit costs of both). In addition, in a lower volume car, dealers play an important role because it costs them a lot of additional costs to carry both versions in inventory. Then you have the costs of dealer trades, etc. Then you have inventory balancing and selling last year's inventory at highly discounted prices.
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Not trivial but not a major factor either. We are talking about a company that works in the billions of dollars. Holding a bit more inventory will not break them. Now if all of a sudden they had their whole stock of Corollas and Camrys sitting unsold there would be a problem. In the bigger scheme of things the cost of maintaining two transmissions is the same as the pocket change the CEO throws on the table every night.
I have no idea what your past business did but you really need to understand the scope of the auto manufacturing business.