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happytiger | 1 year ago

That’s such the point. You’ve got one of the core issues about what is going articulated perfectly.

The problem is that the manufacturers are incentivized to build them with high repair costs based on how they make money… they make a ton from parts. And there are massive changes forecast for the parts market.

If you really want to dig in, and you may know all of this already, this is a great article outlining the transition currently happening for tier1 parts suppliers:

https://www.bcg.com/publications/2023/growth-strategy-tier-o...

All of these changes are coming out in the insurance industry, but the insurance industry is constrained by what insurance commissioners will allow, and of course there’s the point you are making at core — they’re not making parts affordable because it’s become a profit center for them. A lot of money is now being made in the backend as companies optimize their supply chains for BEVs.

Take a look at the New Strategies section of that article.

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