r/SipsTea • u/Putrid-Welder1803 • 10h ago

SMH Thoughts on this?

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u/Plane-Education4750 8h ago

Not really. Toyota can sell new cars for $10k-$15k overseas. Those cars do not meet American crash or emissions regulations, but $5k-$7k more per unit should fix that easily

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u/Mcoov 8h ago

Because sales of expensive Western-market cars help subsidize lower price-point third-world car sales.

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u/Plane-Education4750 7h ago

Except that's not always true and the manufacturers would save a ton of money by being able to sell truly globalized lineups

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u/Mcoov 7h ago edited 7h ago

If that globalized car cannot be purchased because no one in that regional market can afford its sale price, then the manufacturer isn't saving money at all.

If consumers in Market A have shown through market studies and past experience that they will continue buying cars even if the price goes up, then the profit margins from selling at that higher price in Market A can help cover the losses taken from selling at a lower price that is affordable for Market B.