44.7k views
5 votes
Will it make sense for a car brand that makes exclusively hypercars only to also make trains,planes and luxury sedans and no other types of vehicle bodys?

User Yngve Moe
by
8.0k points

1 Answer

3 votes

Final answer:

A hypercar brand might find it strategically viable to expand into luxury sedans, which align with their reputation for luxury and performance, but venturing into trains and planes would involve different expertise and market dynamics.

Step-by-step explanation:

Whether it makes sense for a car brand that exclusively makes hypercars to also venture into the production of trains, planes, and luxury sedans depends on various strategic considerations. For a company known for high-performance vehicles like the Ferrari Testarossa, diversifying into other transportation mediums such as trains and planes could be a reach, due to vastly different engineering, regulatory, and market dynamics. However, expanding into luxury sedans could be more aligned with the brand's existing reputation for luxury and performance, as seen with marques like the Toyota Camry, Ford Focus, or Honda Civic. Considering various factors such as production costs, consumer preferences, and the need to satisfy stakeholders from regulators to assembly line workers, a hypercar manufacturer would find that the economies of scale and specific expertise required for producing trains or planes differ greatly from those for cars.

User Timeon
by
8.5k points