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Category: Syllabus Schedule

Tesla Dealerships

Posted in Posts, and Syllabus Schedule

This post is dedicated to my dad. I learned today that my dad is fascinated by Tesla and has been following the question of whether Tesla is a technology company or a car company. In a sense its both (The amount of patents that Tesla has for the model s is around 150). The companies straight to consumer business style has not made dealers happy.  Currently car Dealers in four states are in lawsuits attempting to prevent Tesla from owning sites to sell its vehicles under the belief that giants of the industry would begin to do the same putting the dealers out of business.

Frank Ocean’s BMW and the State of the Culture of Cars

Posted in Posts, and Syllabus Schedule

One final music suggestion, Frank Ocean’s Lost:

One of the areas constantly in the background of this econ of the auto industry course was car culture. In fact, it is important enough that we even spent time reading and discussing Tom Wolfe’s “The Kandy-Colored Tangerine-Flake Streamline Baby,” a collection of essays which delve into car culture in the U.S. during the early 1960’s.

New S class key to boosting Mercedes profit margins, China sales

Posted in Posts, and Syllabus Schedule It seems that Zetsche is not wanting to sell the new S-Class to the driver, but more to the passenger. The new S-Class will have…

In boost to GM and VW, China resumes incentives for foreign auto investment

Posted in Posts, and Syllabus Schedule   China will encourage foreign investment in order to increase labor-intensive projects in the central and western regions. This will reverse a policy created…

Spreading out for a little elbow room

Posted in Posts, and Syllabus Schedule

Out of everything we have learned in this class, what has had the greatest impact on me personally is the realization of the importance of being globally diverse. From various national economies taking downward turns, to devastating tsunamis, I have learned that if you aren’t spread out, you are taking a major risk.

In an increasingly interdependent world it is important to not only seek profit globally, but to spread risk globally. Metelsa is an excellent example, expanding to Russia and Vietnam. A slow down in the North American industry would hurt, but not totally devastate the company like a company with “all of its eggs in one basket.”

Nice Paint or Nice Airbags, Your Call

Posted in Posts, and Syllabus Schedule

Safety, what is it worth? As an OEM you obviously have to produce a car to a safety standard that will allow it onto the road legally. But, how much should you invest in producing a safe car? Engineering hours aren’t cheap, and making a safe car takes lots and lots of them.

       The new Subaru Forester is the first of around 13 vehicles to get a “good” rating on new, more stringent, IHSA safety test. One has to wonder though, for Subaru, was it worth it? How many fewer cars would Subaru sell with a “4 star” rating vs a “5 star” rating?

Decisions like these are faced by automakers every day. Quality, in any area, is not cheap. What people see and touch is often prioritized above what is underneath. For example, would you rather buy a “5 star” safe car with paint that will people would bet it’s the latter. l after 2-3 years, or a “4 star” car with flawless, show quality, paint. For most people, Automakers make decisions like this, although maybe not to this exact level.