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Subject:Re: ?? SA Engine Conversion ??
From:Charles McGehee
Date:Fri, 15 Jun 2001 09:26:03 -0700

At 10:34 AM 6/15/01 -0500, Terry Kay wrote:
>Now here's a simple question----
>Why do you think, that buy offering an engine update kit for the
>Vanagon, that VW would jeopardize the Eurovan?
>
>Bwa, Ha, Ha, Ha , Ha, Ha !!
>( PIMP )
>
>I highly doubt it !!
>
>   ______________
>  |[  ] [  ] [ ]\
>  |    |    |    |
>||-(())----(())-|
>
>
>Terry
>74 Campmobile (Clementine)
>85 GL
>86 BMW 325 ES

Maybe it would, maybe it wouldn't.  If VW thought there were a nitch, they
would probably exploit it.  But it's expensive offering a new line, even of
engine conversions.  They would have to offer service over an extended
network, which means technical training, parts, warranty, etc.  All those
resources would have to be shifted from other activities, such as
the  Eurovan.  VW's misjudged markets before such as when they ended the
Vanagon line and started with the first Eurovans which fell on their
faces.  They had to spend a lot of money making up for their misjudgement
of the market.

Further, replacement parts pricing policy follows a similar logic.  High
prices will be paid by people who own new, valuable cars.   And since older
cars compete in the market with newer cars, it is hoped that people owning
older cars  will be less likely to pay the high prices and will be
encouraged to buy newer cars.  That, of course, creates an after market to
cater to the likes of us who don't give up easily.  A kit to keep an old
Vanagon going even longer isn't likely to be high on their list of
important things to do.  But, as said, they've been wrong before.

Charles
'85 Westy