nberry:
I remain puzzled. I assume the cost to build the car is the same whether it is sold in Europe or ROW. If anything, the added cost for shipping would favor a cheaper price for Europe.
Also, though it may be correct
, your explanation is counterintuitive. Since Europeans have less to spend (for whatever reason), it would make more sense for Porsche to price the car the same as the US just to sell more cars there. Additionally, aware of the onerous VAT tax, Porsche should reduce the price to make the over cost of the car more attractive to European buyers. What am I missing?
Automobile prices are far lower in the US than in Europe. Strange but true.
My explanation: The majority of US buyers is often not interested that much in buying high-end quality (same applies to houses, bathroom equipment, etc.). They tend to go for a compromise between price and quality ("good enough") - forcing OEMs to sell premium cars at rather low prices. Also, you cannot use high-performance sportscars in the US as you can use them in Europe (Germany in particular). Thus, why pay as much as a European buyer might be willing to pay?
To date I did not find any other explanations for the strange price patterns in the car sector Fact is: European buyers subsidize US buyers.
P.S.: Don't think that European markets have less wealthy buyers than the US
).
