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by lurk2
301 days ago
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So if I’m understanding you correctly, the play here is: 1) Build engine with $market_leading_horsepower. 2) Throttle engine so that base models of a car have $market_leading_horsepower - $throttle_amount. 3) Price discrimination for enthusiasts removes the throttling back to the original $market_leading_horsepower while also saving the effort of having to design a faster engine. Is there no extra cost associated with machining the faster engine? That is, would manufacturing a slower engine for the base model not be any cheaper than just building the fastest engine they can into all models? |
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There probably is but it's much less than the cost of having different engines for different performance specs of the same model of car (which is very common).