Quote:
Originally Posted by wtwo3
Quote:
Originally Posted by robopp
Interesting. So all the comments here about BMW moving to a build your own model are not exactly accurate. Dealer inventory is still a sales model.
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I think those comments are driven more by people's desire to eliminate the dealer network. In reality what's happening is simply a result of constrained supply. I think what many don't realize is that having an MTO (made to order) model as the exclusive way to purchase a car is great when demand meets or exceeds supply, but the second demand begins to drop and becomes irregular, your production and capacity planning becomes suboptimal. That's where the dealer network comes in to play to absorb inventory. |
Agreed and very well said. Thanks!
Plus if the dealer stuck with the MTO model and a customer walked in looking to buy a car today they'd lose out on the sale.