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HIGH VOLUME: DaimlerChrysler
In April of 2000, DailmerChrysler began selling the new PT Cruiser: an under-$20,000 car with a catchy 1930's styling. Throughout the early part of 2000, buyers lined up to put down deposits on this exciting
new hybrid vehicle. The retro-styled vehicle is taller than a standard compact car, and has back seats that come out easily for roomy hauling space.
DaimlerChrysler was delighted at the high volume of sales. The company expects demand to exceed the 185,000 unit production capacity of the DaimlerChrysler plant in Taluca,
Mexica. As a result of the huge volume, the company expects to earn $2500 on each PT Cruiser, a dramatic increase over the usual loss the company takes on production of most compact cars. Dealers are
placing huge orders for new PT Cruisers. As Fresno, California dealer Tim Finegan claims: "I've been selling Chryslers since 1973 and I've never seen this much interest."
The DaimlerChrysler is an example of volume exceeding expectations of the company's predictions. As a result of high volume, the company is able to increase the profit margin of each vehicle.
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