Quote:
Originally Posted by Ohio Enthusiast
I'd argue it's a shrinking market. In the past you could choose a fast sports car or a slow family car. Now the family cars are fast (sometimes faster than sports cars...), so most people that just want to "feel sporty" or have a nice spec sheet on their car can get that in a more convenient package (sporty CUV anyone?). The true sports car buyers are still there, but now the "sports car" buyers have other options.
Volume allows for splitting the cost of developing the car on more units. If it costs the same to develop a sports car and an econobox, the R&D costs per unit for the sports car would be higher (which would either mean higher price for the car or lowering production cost by compromising on things more).
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Economy of scale is real and measurable.
I can sell you two hundred rotors at $500 each or two million of the exact same thing for $5 each. The more of something that is made the cheaper it can be done for.