Vfacts june 2016

[Hawkeye84]

Originally Posted by olds

I don't want to quote anybody but the old chestnut of as long as you make a profit on every car it doesn't matter how many you sell that has been trotted out on this forum so many times is a load of crap and the flogs that profess this can go back and read their old posts and see where ford Aus are now .The proof is in the pudding if you sell volume at a loss the company can be profitable by making a profit on after sales service. If you sell by profit per item and are not a prestige marque and sell a quality product like Ferrari etc. you will cease to operate. Too all that disagree with me look at what has happened to the Aus car industry and get stuffed

Absolutely youd want to make profit on cars. If its selling at volume even better! Theres more money selling cars than parts and after sales.

Youll find that if a car manufacturer is fully relying on after sales/service to make money - theyll be out of the business as no customer wants to spend a bomb to maintain one.

Sales/profits from cars comes first - revenue from after sales comes as a result of the first. Not the other way around