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by solidsnack9000
19 days ago
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It can be in their interest if their model assumes certain revenue from sales and service. Most brands of cars can be repaired by independent technicians. Toyotas are more valuable because they are reliable -- because they are repaired less often. |
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In the short term they can increase their profits by reducing quality and designing their product so that it must be serviced at an OEM shop, but this will come at the expense of future sales when customers take these increased repair costs into account and buy from other manufacturers who don’t engage in these tactics.
This is why competition is so important: without it, buyers have no alternative and manufacturers have no incentive to provide value instead of fleecing thier customers by providing an inferior product with expensive repair options only.