mgs
[Top] [All Lists]

Re: Hypothetical question

To: Matt Pringle <pringlmm@mcmaster.ca>,
Subject: Re: Hypothetical question
From: Scott Hower <howersl@yahoo.com>
Date: Wed, 7 Jul 1999 12:41:19 -0700 (PDT)
Matt-

Ok, since you asked :-)  

1. The technical challenges in creating a near copy
of our beloved LBCs would pale in comparison
to the legal/regulatory challenges you would face in
attempting to certify the car for sale today in the
market (i.e. the US).  Crash standards, emissions requirements, fuel
efficiency, the list goes on and
on.  IMO, that's what led to the demise of these cars
in the first place.  Although I suppose B/L leadership
might be partly responsible for lacking the foresight to see it coming.

2. You could sell them for precisely what buyers
would be willing to pay for them.  That's not meant
as a snide remark, just basic supply and demand. 
The price could be cheap or it could be expensive,
but it will be determined by what a buyer *thinks* the
car is worth based on build quality, features,
scarcity, etc.

The cost to build it is a factor in making a *profit*,
but not in the price at which it will sell (remember
the DeLorean?).  In theory, price is determined by the
market, not the manufacturer (in practice, I suppose the manufacturer
has some control on the upper end of
the price bound, but not the lower). 

3. If you had sufficient capital to overcome the
regulatory hurdles and could scale to make a profit,
the market might be there- although I doubt it would
be comprised of loyalists like ourselves (I probably
wouldn't buy one).  DaimlerChrysler seems to have a
winner with the Prowler, but I'd be curious to see how
many hot-rodders actually own one.

Having said all that, one company seems to have the
right formula for success: Morgan.  Last time I
checked, the waiting list for brand spanking new hand-
built Morgans in the UK was measured in years, and
they are not inexpensive cars.  

Maybe there is still hope...
  
--Scott


--- Matt Pringle <pringlmm@mcmaster.ca> wrote:
> Hi there,  I was just thinking about the state of
> new car design and
> construction (and the excesses of such) and was
> pondering this
> questions.
> 
> 1) What would be the technical challenges of
> building brand new MG's (my
> preference would be for MGA's).
> 
> 2) What could you sell them for ($)
> 
> 3) Would they sell in sufficient quantity to justify
> it.
> 
> Just curious as to your opinions.
> 
> Matt
> 

===
Scott Hower -> howersl@yahoo.com




<Prev in Thread] Current Thread [Next in Thread>