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Used - S2000 - Who wants them ?

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Old 07-22-2002 | 06:54 AM
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cbj
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From: Knoxville
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Originally posted by S2K2GO!!!
If market support is so thin that people start getting new cars in the $30K range, I don't see how Honda could possibly make money, given the amount of hand-fabrication required. How long do you think the company is going to keep selling the car if it loses money on each one? It could be that the stage is being set for discontinuation. I hope not- I'd imagined that I'd be switching my OEM hardtop to an '05 someday!
I think you need to remember there is a difference between Honda Corporate (Japan) and American Honda Motors (AHM). Corporate manufactures and for all practical purposes sells the S2000s to AHM and the respective dealers in the U.S. Corporate sells the cars to AHM/Dealers for a set amount, basically invoice. It is up to AHM and the individual dealers to make a profit on the car from that point. Corporate doesn't care (broadly speaking) if the cars are selling for $100 or $10,000 over invoice, as long as they AHM is able to keep selling them. So from their standpoint as long as AHM keeps buying the S2000s to keep up with demand Corporate will be happy. Once the car stops selling is when AHM quits ordering them and Corporate would have to think about discontinuation. [For anyone who is in the auto business, I realize my explanation is a little simplistic, so feel free to expand/correct me]
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