I don't think Korea could have stayed in the market without government backing and support from other divisions. They were loosing tons of money on their extended warranties and horrible lease residuals. They are probably making ok money now that the brand has finally stabilized and their quality has gotten a lot better but before that they were burning though lots of money. I think thats basically what it takes to get established in an industry that has such a high barrier to entry. You have to burn lots of money until you have enough volume and knowledge to finally make money.
Shoot. That sounds a bit like Tesla's strategy at the moment.They are probably making ok money now that the brand has finally stabilized and their quality has gotten a lot better but before that they were burning though lots of money. I think thats basically what it takes to get established in an industry that has such a high barrier to entry. You have to burn lots of money until you have enough volume and knowledge to finally make money.