Re: 2nd Round: How the Luxury Market Dominance was Lost

Posted by Mike T On 2010/2/15 21:41:55

"One thing I am not clear on. When I read a discussion of this kind, it appears that Cadillac beat Packard by cleverly offering cheaper mass produced cars and easy financing to outsell Packard. While Packard foolishly offered cheaper mass produced cars which only cheapened their name and drove away customers.

I don't quite see why using the exact same strategy was brilliant and successful for Cadillac and foolish and destructive for Packard."

When I read this statement over more closely, I think Rusty meant that Caddy could afford to build a car, of existing quality, for less money. And Packard had to build a cheaper, i.e. lesser quality, car at the to compete on price.

Please correct me if I'm wrong.