Europes 10 Best Selling Cars 2007

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Europes 10 Best Selling Cars 2007

i used to work at peugeot an the only good thing about the 207 in my oppinion is the drive is really good . and the gti diesel is really quick. think they look crap though and way overpricey. start at around 10 grand for a basic S model which looks so boring. grande punto all the way
 
Prolly costs. They reasoned the market isnt here and that they would not sell enough of them in the UK at the right price to make it a worthwhile exercise. It costs more to make a RHD car than a LHD one because of the economies of scale.
 
The more you make of something, the cheaper the unit price becomes thats a fact and is what my statement is based on. Think Model T fords and DVD players they only became cheap when they started rattling them out, then demand grew because of the low price and they made more and the cost dropped further.

RHD cars are the minority so lets say for every RHD GP made, Fiat make 100 LHD drive ones for the rest of the world. Therefore the specific RHD parts will be more expensive to produce than the equivilent LHD parts simply because they dont need as many and there is less demand. Then all the RHD parts will have to be stored and transported and allocated numbers etc and it all adds up. The trick is to share as many parts as possible between LHD and RHD models to keep costs down, a good example of this is keeping the bonnet release on one side and not moving switches from one side to another, like they do in the GP but things like dashboards, Lighting, clutch, brake, accelerator linkages and certain steering components cant be shared.

The difference in wholesale parts cost wont be huge between LHD and RHD cars but even if its only £10 more and you make 1,000,000 cars that totals £10,000,000 over the manufacturing life of the car.....The term used to describe this is Economies of scale.

http://en.wikipedia.org/wiki/Economies_of_scale
 
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