Quote:
Originally Posted by 220S
+1
Major cost cutting going on at Daimler. There has to be, they have no choice these days.
And they are introducing a new version to the world but with a reduced price tag. Think about it.....
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Or they have reduced production, lowering their variable per unit costs, while fixed costs naturally decrease over time... FC + VC = TC
Furthermore, with lowered production and cost-cutting, quality should improve because in the short term, the only thing they can do is fire people to increase the marginal product of labor.
In the medium term, they will be able to lower wages while still commanding higher output per worker, directly lowering the capital inputs necessary create the end product... (this means lower price)
Doesn't look, feel or drive any cheaper than my 07 e-350...