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All about Volkswagen Golf and journey toward EVs
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VW no longer sells compact EV hatchbacks in the USA. Let us know when we can buy an e-Golf equivalent vehicle. Thanks!
No ID.3. VW's only BEV on sale now is ID.4.
Car manufacturers think Americans only want SUVs; they prove themselves right by not offering anything else! I would love a newer version of the e-Golf that has 250 miles range instead. The main reason we constantly hear that EVs are unaffordable is because they only sell overpriced SUV versions of EVs in America. I saw news that VW’s new ID.2 might go on sale in America; sounds like it might be a great replacement for the e-Golf... similar size, but with 280 miles of range!
https://www.forbes.com/sites/alista...-to-watch-in-2024-and-beyond/?sh=55b2a124365b
https://www.forbes.com/sites/alista...-to-watch-in-2024-and-beyond/?sh=55b2a124365b
I've read about this "higher profit margin" for SUVs over and over, but I can't understand it. Why wouldn't manufacturers have to compete with each other on price just as much for SUVs as for sedans? Is the idea that they are conspiring to keep SUV prices high? I can see that margins could be higher on "luxury" vehicles, simply because the buyers have more disposable income so they are less price conscious. But why would the profit be higher for a Honda CRV than for a Civic? If it is, then wouldn't Toyota make the price of the RAV4 lower than the CRV, and thus outsell Honda? Competition should tend to lower profit margins for every segment. Why would the SUV segment (of all sizes, subcompact to full-size) be immune to competition?
I don't think they are intentionally conspiring, but they know people are willing to pay extra for a lifted civic thanks to the marketing that makes these SUVs sexy, so the lifted civic costs more.
As I was reading that article, I noticed time after time that it has some awkward phrasing and that it was not making sense, to where it seemed to be saying that the reason CUVs have higher profit margins is that they have higher profit margins, i.e. circular reasoning. I got to the end and found this:
[wpchatai]
A great example of what we all have to watch out for on the internet now. The poor writing was what tipped me off. This is an example garbled statement from the article:
"Since a CUV shares common parts with other subcompact cars, manufacturing expenses are higher CUV markup with increased profit margins."
Sure. I picked a link at random. It is still greed.
https://www.autonews.com/article/20...911/crossovers-and-suvs-fatten-profit-margins
https://www.autonews.com/article/20...911/crossovers-and-suvs-fatten-profit-margins
I'm not a subscriber to autonews, so I can't read that one. However, "greed" doesn't answer the question. I'm sure the auto companies and dealers have just as much greed for making high profits on ALL vehicles. Is it just because buyers of "cars" are willing to shop around and get a lower price, but buyers of "SUVs" foolishly pay the extra markup? It seems as though competition between brands should make the markups on SUVs unsustainable, unless the producers/dealers are conspiring on price rather than competing. I just don't get it.
“Should” is the operative word.
Yes, that's why I chose that word. I guess no one really has the answer, which is pretty much what I expected. As I said, I've seen that "higher profit margin for SUVs" repeated over and over for a decade without an explanation.
UranoMausBosch
Active member
For quite a while, "SUV" were classified by DOT/EPA as "Trucks" - and didn't have to be as fuel-efficient or have same safety features as cars Building a "luxury truck" with leather, fancy stereo and chrome on already paid-for basic truck frame/suspension/engine/transmission designs yielded a vehicle that was perceived and marketed as "luxury" (ie; higher price) while actually being less expensive to manufacture. Profit margin is the difference between materials cost and sale price - thus SUV have been enormously profitable.
Prime example was early version of Cadillac Escalade built on a truck chassis - still had a solid rear axle, leaf springs and *drum brakes* in rear.
There is still a certain amount of "more = better" mindset/perception/marketing/etc in that for same amount of $$ people tend to prefer a larger house, car, boat, TV, etc...
Reality is that cost of manufacturing a subcompact is not that much different than an SUV (labor, supply chain, etc) - but the market pricing (and profit margins) are noticeably different.
Prime example was early version of Cadillac Escalade built on a truck chassis - still had a solid rear axle, leaf springs and *drum brakes* in rear.
There is still a certain amount of "more = better" mindset/perception/marketing/etc in that for same amount of $$ people tend to prefer a larger house, car, boat, TV, etc...
Reality is that cost of manufacturing a subcompact is not that much different than an SUV (labor, supply chain, etc) - but the market pricing (and profit margins) are noticeably different.
