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Home»Modern MBA»Why Luxury Cars Don't Make Money
Modern MBA

Why Luxury Cars Don't Make Money

December 15, 2024



Study extra about Damon Inc. at https://damon.com/

Proudly owning an unique automobile like a Lamborghini, Ferrari, or Porsche is impractical and has been for generations. The aggressive design and tight interiors translate to tiny storage with trunks which might be even smaller than that of a Toyota Prius. Mockingly, the engines are wasted on public roads the place pace limits and visitors forestall these vehicles from ever attaining the efficiency that make them so particular within the first place.

But these autos have grow to be the final word standing image for artists, athletes, worldwide college students, and clout-chasers – and that exclusivity is as a lot a legal responsibility as it’s the basis to their enchantment. Luxurious vehicles should be babied and can’t be each day drivers. There’s solely so many individuals who’ve the pockets and the approach to life to afford and work round this impracticality – and so they’re not shopping for a brand new automobile yearly.

It’s a departure from the standard auto trade the place producers compete to ship essentially the most vehicles. Once we take a look at quantity between bestsellers just like the Ford F-150 and Tesla Mannequin Y and exotics, the distinction is orders of magnitude. How can these unique producers maintain such tiny volumes? How can all of them survive combating over the identical pool of high-net-worth people? On this episode, we’re diving into the economics of luxurious vehicles by means of the lens of Ferrari, Lamborghini, McLaren, Porsche, Aston Martin, Bentley, and Maserati.

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This YouTube video was carried out on behalf of Damon Inc. (NASDAQ: DMN) and was funded by Exterior The Field Capital Inc. and/or associates after Fashionable MBA was engaged by Exterior The Field Capital Inc. to promote for Damon Inc. (NASDAQ: DMN).

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