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Highest Vehicle Sales while still making a profit
#10
(01-09-2014, 08:50 PM)Eric.B Wrote: Transport cost go down over time. It's a way to prevent someone from setting up shop in Africa and exporting to the West early in the game.

Same thing happens in reality too. Most Japanese cars in the US are made in the US these days. The only things imported are either very low end or very high end. The later is less profitable even with the reduced labor costs. (I'm still waiting for a $3000 Tata Nano damn it!)

That being said, super cheap cars in UK vs Super Cheap Cars from Yugoslavia + transport, I think eventually some point in the game the Yugos will beat the Reliants. Wink

I follow your point about the transportation costs in Gearcity, from what ive seen i think it works well at the moment.

On your later point its interesting and something i hope to try out ingame. I would/will be quite impressed if increasing labour costs/admin force me to produce vehicles in another county. Or perhaps that happens already and im too lazy to notice Smile

Be Warned, Long rant ahead of local car production, its a big political football in Australia(my country) atm

On car production, the trend is towards the opposite of what you describe in Australia (My country) at the moment.
My understanding was that the vast majority of car companies in the developed world were having similar problems.

In Australia:
The cars we produce here aren't bought by enough people here to cover the high costs of producing them (developed country- so wages etc.)
My understanding, is that this is partly because people aren't favoring locally produced cars enough and partly because of a slow reduction in things like subsidies and tarrifs over the last 20-30 years(probably longer).
Long story short, the vast majority of our vehicles are imported.

So:
There was local car production for the local market for many years here, but now the two largest ones, Ford and Holden, will be gone in 5-10 years.
The only remaining locally producing auto company (Toyota) makes (well, partly assembles) cars here, sells some here and ships many of them overseas.

Strangely, the only company to survive has done much better producing vehicles locally for the export market than the local market.
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RE: Highest Vehicle Sales while still making a profit - by Arakash - 01-10-2014, 07:50 AM

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