Shorter Model Cycle in Car Industry
You may have noticed your new car gets old quickly. You buy a new car today and a year to three years later a new version comes out on sale. At that time, your car becomes a part of your past. The source of it does not come from your imagination as you are amazed with the coming of the more eye-catching new model running on the road, but unknowingly, it emerges from the new shorter car industry term shelf life of the vehicle with the type the same with your own car.
Shorter term of self life has now become the standard of many car manufacturers worldwide to refresh a particular type by redesigning a new model in just a shorter span of time with no other agenda in mind but to raise the sales of that type and make remarkable profits. Thus, it is becoming just usual for a new model to be updated even before the span of three years. Some are even updated within one year after the launch of a new model.
The result would be that only very few cars remain on sale in display centres in the market after five years or so before its complete redesign is done. Whereas in previous years particularly in the beginning of the 21st century it was just common for a new car to remain in production and on higher sale for six to eight years.
What has really changed is obviously the pace that actually follows the mandate of the government in implementing the updated safety standards as issued. Car manufacturers then uphold the meddling of the government of what to manufacture and the intervals in doing it must be done purposely to prevent accidents and save lives.
Aside from this, car manufacturers also encounter pressure along the way forcing them to redesign or make new models. For instance: Most of the 2014 model cars are almost the same as they were in 2013 and 2012. Because these cars are closest in design, with the latest government mandate, the industry term for cars that are almost the same this year as they were last year will be at a disadvantage. Since the car that earned recommendation as Top Pick last year may slip Second in the list just a year later. This puts a lot of pressure on the car manufacturer to re-design it so that it will recover its previous sales performance level.
As the government acts in providing safety to the motorists and the public, one of its closest allies on the job is the car insurance companies. With objectives to make more profits, they got a lot of ink as they publish the safety ratings of new cars. They have done this to help raise the sales because with the most advanced safety systems, a car has in its features that attract buyers, the more profits they will raise as these vehicles flood the streets. Then the insurance policies sale is up plus the cars’ safety systems minimizing accidents and other safety performance attached to the insurance premiums rate, they will take the most of the advantages.
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