pwnc

How Many Automakers Survive the Long Haul?

I've seen one version of the pent-up demand concept: There are more than 200 million vehicles on the road today. At an 8 million/yr. replacement rate, that means 25 years to replace those vehicles, which is an unrealistic length of time for the vehicles to last, so it is said demand has to climb to at least 15 million/yr. simply to replace existing vehicles, not adding in any additional demand from population growth. Seems logical, but doesn't predict near-term sales. My own car is 13 years old and ripe for replacement.

Will Hyundai's Luxury Car Be Like the VW Phaeton?

Isn't Hyundai in much the same position that Toyota was when it launched Lexus, with Mercedes and BMW "unassailable"? Early Toyotas rusted out, just as early Hyundais were unreliable. Now the Sonata has captured many would-be Accord/Camry buyers. Are you saying luxury buyers aren't interested in relative value? The Genesis is really challenging (and challenged by) the Infiniti G35 and Acura TL more than BMW et al and both of the former probably outsell the BMW 5. I'm not sure there are 50,000 Genesis buyers out there in this economy, but I'd bet on the Koreans making it a success over a few years.