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Old 04-04-2005, 05:54 AM   #19
crayzayjay
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Join Date: Aug 2004
Location: London
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Ah but you see, Merc's high fixed-asset cost base means any change in sales is magnified down to the profit line. Merc NEEDS to sell more products. Admittedly, they have made expensive mistakes (Smart), but as manufacturing techniques are righted and the dollar hopefully stabilises, they'll have a much rosier outlook.

VW's problem is that, like all German car companies, it is run by engineers. Sadly for VW, it is the only one that isn't a luxury brand (vs Merc, BMW, Audi) so it cant get away with charging £50k for a Phaeton.
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