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Path: utzoo!watmath!clyde!burl!ulysses!allegra!alice!ark
From: ark@alice.UUCP (Andrew Koenig)
Newsgroups: net.auto
Subject: Re: End to import quotas...
Message-ID: <3546@alice.UUCP>
Date: Tue, 9-Apr-85 15:25:49 EST
Article-I.D.: alice.3546
Posted: Tue Apr  9 15:25:49 1985
Date-Received: Wed, 10-Apr-85 05:49:06 EST
References: <838@trwatf.UUCP>
Organization: Bell Labs, Murray Hill
Lines: 15

Lord Frith says:

> I wonder.  The Japanese will have to come way down on their prices
> to compete with an expanded market place and with American car
> manufacturers.  That means lower cost to the dealers and little
> or no dealer premium.  But I suspect that dealer's will continue
> to charge inflated prices for the extra bells and whistles to
> maintain their profit margins which they certainly don't want
> to lose.

Of course they will.  For a while.  Then some dealer will realize
that chopping prices will attract a LOT more customers -- more than
enough to make up for the lost profit on each car.  Once a few start,
the rest will have to follow.  Prices will eventually drift down
to where further reductions would not increase profits.