Today's problem is profitability. I don't believe they fully understand yet why unit profit has dropped when unit sales have risen. The MMC used to make far more on far less sales.
I also hope that increased production will not ruin the once rock solid residual value of the cars as this already seems to have slipped (Roadsters seem to be dropping very quickly).
Not being an expert of the automotive industry my guess would be that depreciation goes hand in hand with the age old 'supply and demand' curve; however, would welcome being proven wrong if someone had a more factual analysis.
Nevertheless, one of the real USPs of the Trad cars would surely have to be the rock solid resale value of preowned cars? If production increases and demand doesn't grow back to the 2-5 year list of many years ago, won't the market just be flooded and used prices drop drastically?
I recognise this is a very simplistic view but the question is a valid one I believe.
