I think the most dangerous time for EM will be shortly after they start production. The reservations will buy all the vehicles made for a while. After these are filled, the plant will be producing 1,000 vehicles per day and relying on store orders to buy the vehicles being made, at least those are the plans. Demand for cars is not constant and varies with time. Will public demand for the Elio start out slow and have to grow or will it be immediately at 1,000 per day?
Will the store orders buy 1,000 vehicles per day? I think the vehicle is absolutely great, but that does not mean other people will see it that way. The vehicles we reservationists drive on the road will be great advertisement. The media will talk about these unusual vehicles on the road which will also be great advertisement. But will that be enough.
When demand decreases, the assembly line can be slowed down. That drives up the price per vehicle but the large auto manufacturers have large cash reserves to weather these things out. EM will be a young company at this point and not have large cash reserves.
What do these companies do when demand is less than production and the dealer lots are full? There will be no dealer lots to act as buffers, though there will be the lots of the marshaling centers to act as buffers. If a shift is shut down, the manufacturing cost per vehicle goes up and important workers may be permanently lost when they do want to restart the shift.
Perhaps Ty has seen these things.
Oh Ty, where art thou?
Will the store orders buy 1,000 vehicles per day? I think the vehicle is absolutely great, but that does not mean other people will see it that way. The vehicles we reservationists drive on the road will be great advertisement. The media will talk about these unusual vehicles on the road which will also be great advertisement. But will that be enough.
When demand decreases, the assembly line can be slowed down. That drives up the price per vehicle but the large auto manufacturers have large cash reserves to weather these things out. EM will be a young company at this point and not have large cash reserves.
What do these companies do when demand is less than production and the dealer lots are full? There will be no dealer lots to act as buffers, though there will be the lots of the marshaling centers to act as buffers. If a shift is shut down, the manufacturing cost per vehicle goes up and important workers may be permanently lost when they do want to restart the shift.
Perhaps Ty has seen these things.
Oh Ty, where art thou?