The Gift of Overproduction
Update: I was probably wrong on this one (see here).
You see the ads for Lexus with the cars with red bows on top, the ultimate Christmas gift, right? It’s really the result of overproduction and the need to dump product at the end of the year. The WSJ article said:
Once upon a time, auto makers accepted that the Christmas season wasn’t a great time to sell new cars. But that is ancient history. Now, the 12th month of the year is one of the most promotional on the auto-industry calendar. One reason is that car companies, especially the luxury makers, realized that it was better to hold sales than end the year stuck with too many out-of-date models.
Surprising that the company that talks about the “waste of overproduction” (Toyota) has end of year clearances (Lexus). It goes to show they aren’t perfect.