The lessons they took away from the COVID lockdown era are that it’s better to sell lower volumes with higher mark-up. Their business models are shifting away from high-volume, low-margin sales.
Why sell 100 cheap cars with a $2K margin, and deal with all those potential warranty/recall issues - when you can sell 10 top-of-the-line variants with a $20K+ margin, and continue to rake in extra with higher service costs, finance fees and the like.
Most automakers won’t, any time soon.
The lessons they took away from the COVID lockdown era are that it’s better to sell lower volumes with higher mark-up. Their business models are shifting away from high-volume, low-margin sales.
Why sell 100 cheap cars with a $2K margin, and deal with all those potential warranty/recall issues - when you can sell 10 top-of-the-line variants with a $20K+ margin, and continue to rake in extra with higher service costs, finance fees and the like.
They don’t have a $20k margin on EVs. They’re barely break even and often lose money. They sell them for CO2 credits