Talk Morgan Forums Morgan Sports Cars Morgan Plus Four, Supersport & Plus Six (CX & CXV Generation Vehicles) PlusFour to USA

Or mmc could be screwing the eu market to subsidize getting into the USA

I'm sure they are making the US models attractively priced to break into the market and get the cars all sold, I'm sure in time the prices will rise once demand has been secured. Its all down to how much spare capacity they have at Pickering Lane, if they are covering the overheads and profits on the UK and European production, then basically they could be pricing the US market cars at the marginal cost of production.

Exactly one market subsidising another

You could say that, but if they are expanding current production rather than diverting it from existing markets, if the current UK and EU market currently pays the bills, then any additional production could be priced on the marginal/additional/extra costs involved solely on that production rather than on the full absorption costing for current markets

I seriously doubt that Morgan will lower UK and EU prices in established markets if current demand holds up and then load some of those overhead costs onto an emerging market such as the USA. Longer term maybe. The current markets pricing structure have probably already absorbed all the additional costs of getting US conformance to-date. I'm sure once the US market demand is secured on an annual basis, the price will rise. If that increases Morgan's resources to secure future product development etc, great.

The most important element is to secure the future of Morgan and if the US market achieves that and reduces reliance on existing markets which may well be close to saturation, look at where used prices are heading......then surely that is good for the brand overall.

Yes I would agree.

It is far from uncommon for cars to be significantly priced lower in the US than the UK/EU. I used to work for a company where we analysed pricing, spec and configuration in the auto industry and going back 15 years ago, the cost of anything other than the Big Three US brands were significantly less in Canada/USA the ROW.
Porsche used to have prices in the US substantially lower but recently, with a lot of noise from customers, raised them.

Mercedes Benz- - An S550 in the US is approx £15,000 less than here in the UK and the US spec has a bit more kit.

VW Golf GTI - Base price is approx £18,000 less in the USA. For a GOLF!

Mazda MX-5 - The lowest priced roadster is priced approx £5,000 less in the US. Base price starts at £28,000 so well less than half of a CX

Lotus Emira First Edition - approx £8,000 less.

It gets even more interesting when you dive into the details of what is included as standard. I used California sales tax of 7.5% on the US prices.

In short, it won't surprise me whatsoever if the CX comes in at a more favourable price than what we pay.

That has always been the case, with Europeans paying the difference. With pharmaceuticals, it's exactly the opposite. A daily dose of Lilly's Trulicity for diabetes treatment costs many times more in the US than it does here. I am not affected, just interested.

Maybe as a reference point on the subsidy discussion ... the 3-wheeler is $54k in the US before adding any options or tax. That compares to 35K GBP (42K incl 20% VAT) on the UK website, which considering the current exchange rate is $46.5k. So, in the US about 16% more expensive than in the UK. I surely hope the pricing for the Plus Four will not be like that.

What exchange rate are you using? I come up with $54,000

I used $1.33 per British pound 35K * 1.33 = $46.5 ... used the pre-tax amounts to compare