Boostlag
Senior Member
- Joined
- Jun 1, 2017
- Threads
- 16
- Messages
- 912
- Reaction score
- 802
- Location
- Fairfax, VA
- Vehicle(s)
- NC2 MX5 (Miata)
LOTS of companies (many public) sell for a loss.
On a smaller scale, this is called "Loss Leaders":
https://www.inc.com/encyclopedia/loss-leader-pricing.html
On a bigger scale, its used for grabbing market share away from competitors, or in some cases, meeting Federal requirements.
http://www.reuters.com/article/chrsyelr-ceo-evs-idUSL1N0O71MS20140521
certain cases, yes. Civic type R is based on a Civic hatch back, uses the same tooling and production line as the euro civic. Engine and transmission will be shared with the next Honda Accord coming out next year. One can be said that Civic type R is a test mule/test bed for the new engine for the accord, as Mazdaspeed6 was just a test bed for the CX7. At 34k, Honda isn't losing money on the R.
Sponsored