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Originally Posted by Piwoslaw
Why were the speed and RPM dials worse than the new lcd monitors which display speed and RPM dials? Why are touchscreens better than mechanical push-buttons?
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Customers like to be able to customize the display on the dash. TFT screens are also perceived as more modern and desirable than mechanical dials. They are also cheaper for the manufacturer.
Touchscreens are mandated in cars today. We have to include them for the backup camera. Once that happened it only made sense use it for more functions. Also customers want a big screen for infotainment and are willing to pay more for a bigger screen.
Screens are also far cheaper, lighter, and easier to install than a bunch of buttons and the wire harness required to run them.
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Originally Posted by Piwoslaw
I recently read a few posts from employees of automotive companies, and they admited that the growing amount of electronics in cars does not really raise their purchase prices (in fact, many cars are sold with hardly any profit), but instead guarantee a growing flow of revenue for authorised servicing.
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Who every told you this had no idea how automakers make money. We make little money on service as dealerships are not owned by automakers. They are their own individual companies. Sure we sell them OEM parts but that is offset by the cost of creating the service tools and training materials plus personal to train the techs. Service is not a major profit center for automakers.
How do automaker make money? #1 selling financing. Look at any automaker with an internal finance division and that division will be making the highest profit margins by far.
We also make money selling people the higher trim packages. Base models have very little or sometimes even negative margins. Then we add features in higher trims that have little incremental cost and sell them at a large profit margin. In general the mid to upper trims are the best selling ones. Even the top trim general outsells the base trim.
So the base trim might have a 10 inch touchscreen. We sell you an optional 12 inch screen for $600 more even though it cost us $6 more than the 10 inch model. And people are happy to pay that.
Quote:
Originally Posted by Piwoslaw
How many new cars today still have manual windows? How many models in the USA do not even offer an option for manual transmission?
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Almost no cars have manual windows. Customers don't want them and they cost more than electric windows so we made electric windows standard. Same with manual locks.
Few few models in the USA are offered with a manual transmission and manuals have less than 2% market share here. Why? Customers don't want them. They cost manufacturers more. They get lower fuel economy - which cost manufacturers money. They have lower performance.
The tiny number of people that do want a manual are not willing to pay more to have one than an automatic so automakers just got rid of them.
Even the Class 8 heavy duty truck market is more than 95% automatic now.