Doomed: No Motorshow next year

[milanbenes]

http://news.bbc.co.uk/1/hi/business/7910645.stm


Milan.

[DimPrawn]

Good news. Cars make it rain or something. Ask sasguru.

[Svalbaard]

I don't understand these shows. Can't these people just have a look for a new car on Autotrader like the rest of us? Or pick up a car magazine and then pop off round the local garage for a test drive?

[Mich the Tester]

I don't understand these shows. Can't these people just have a look for a new car on Autotrader like the rest of us? Or pick up a car magazine and then pop off round the local garage for a test drive?

Like any trade fair, they’re a means of advertising a company’s products and future developments to customers and the media in the hope that sales will improve in the longer run. During a recession when sales are poor, directors of listed companies try to find ways of ‘saving money’. One way they do this is by cutting back on large numbers of productive personnel. Another way is by paying their friends on the board failure bonuses. The third way is to stop spending money on trying to sell stuff. It’s not the logic that I would follow, but I’m an ignoramus with no MBA.

[Svalbaard]

Like any trade fair, they’re a means of advertising a company’s products and future developments to customers and the media in the hope that sales will improve in the longer run. During a recession when sales are poor, directors of listed companies try to find ways of ‘saving money’. One way they do this is by cutting back on large numbers of productive personnel. Another way is by paying their friends on the board failure bonuses. The third way is to stop spending money on trying to sell stuff. It’s not the logic that I would follow, but I’m an ignoramus with no MBA.

Cheers. How about only producing cars that they have orders for rather than spending millions on producing a surplus that nobody wants?

Just a thought.

[Mich the Tester]

Cheers. How about only producing cars that they have orders for rather than spending millions on producing a surplus that nobody wants?

Just a thought.

Mr Svalbaard, you assume a high level of intelligence from people who have a soft education instead of a scientific or technical background. Your suggestion is indeed very wise, but lost on those who manage listed corporations.

[Mich the Tester]

I wonder when they're going to start handing out all those suprlus cars for free or selling them half price? In another thread Sasguru's looking for a family car for 6k. Perhaps some of the surplus cars could be sold at heavily knocked down prices instead of accumulating green mould and seagull tulip at ports.

[Svalbaard]

Mr Svalbaard, you assume a high level of intelligence from people who have a soft education instead of a scientific or technical background. Your suggestion is indeed very wise, but lost on those who manage listed corporations.

Sorry Mich. I'll make sure I keep my ideas to myself in future.

[Svalbaard]

I wonder when they're going to start handing out all those suprlus cars for free or selling them half price? In another thread Sasguru's looking for a family car for 6k. Perhaps some of the surplus cars could be sold at heavily knocked down prices instead of accumulating green mould and seagull tulip at ports.

Somewhat on topic I'm after a cheap 4x4 (Jeep / Landy etc) to tow my boat with. Anyone sees a cheapish one let me know.

Yes yes yes - I've done the Autotrader thing.

Cheers.

[Mich the Tester]

Sorry Mich. I'll make sure I keep my ideas to myself in future.

No, no. It’s a good idea. However, there’s an explanation; cars aren’t produced at the rate they can be sold, but at the most economically efficient rate for the factory. That nearly always means there’ll be a surplus. This wasn’t a problem in the past, because manufacturers could sell the cars on lease to hire companies or offer them at a knock down price after a few months of waiting. Now that almost nobody is buying cars and the hire market is down, it’s becoming increasingly difficult to shift extra stock.

Perhaps it’s a good idea to flog off the existing stock cheaply or even give it away to charities so as to free up the money spent on keeping stock to invest in build-to-order manufacturing. Just a thought.