Quote:
Originally Posted by Mark IV
There IS a market. Is it huge? No. Does it exist? Yes.
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Yes, there is no doubt there is a market but is it even close to the numbers that make it economically viable? Noone is going to enter the market for 1 turnkey car - the cost would be prohibitive. What is the materials cost + amortized overhead costs (like warranty reserves) that make it viable? Is it 10? 20? 50? It all depends on how much they can buy the roller for. Now Superformance makes their own so they get it at "transfer cost". Then add the power train cost (probably discounted over a street engine but still not half), and add the amortized fees and then add 20+% profit. Can you sell one with those constraints for 200K-ish? Maybe, but only if the numbers allow you to divide the other costs over enough volume. Then, if others jump into the pool, the TAM isn't additive - each manufacturer doing it divides the TAM up, so the volumes per manufacturer go down.
I really don't see room for more than one, maybe two, manufacturers in the Cobra space and that dwindles over time with the aging of the interested population.
Time will tell...