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Re: Lambo to maintain exclusivity through “controlled growth”. - 05-31-2006, 08:14 AM

Possibly, but China has a long way to go before it surpasses the US to become the new world superpower. It certainly won't happen in our lifetime if you ask me.
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Re: Lambo to maintain exclusivity through “controlled growth”. - 05-31-2006, 08:55 AM

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Originally Posted by Top Secret
Possibly, but China has a long way to go before it surpasses the US to become the new world superpower. It certainly won't happen in our lifetime if you ask me.
Mmm, I read about this before somewhere. They said it would take at least a century before they catch up. Many reasons - one major one is the huge income gap between the rich & the poor; it is still widening.

But no doubt about it, China will become our largest consumer market in the world.
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Re: Lambo to maintain exclusivity through “controlled growth”. - 05-31-2006, 09:14 AM

Hmm interesting...while in terms of GDP per capita and quality of life indices it will take a loooong time for China to surpass the US, challenging the US's position as the only remaining super power is likely to happen much sooner (say 20-30 years). The sheer size of the population suggests that even if a significant proportion of the country's population still languishes in poverty, seeing China's economy etc. outpace the US's (in overall size and not only growth rates) is not an unthinkable prospect.

i.e
US - 20 trillion economy/350 million people
CHINA - 35 trillion economy/1.2 billion people
(These figures are obviously made up but demonstrate what im trying to say.)

Back to lambo, this strategy seems very apt. There is no need for such a brand to go mass market because its future rests securely as part of a much larger automotive conglomerate. Premium products & enhanced profitability is a good direction for these 'niche' makers. As Roberto already suggested, Bentley should take note.
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Re: Lambo to maintain exclusivity through “controlled growth”. - 05-31-2006, 12:21 PM

Quote:
Originally Posted by Mr. Mercedes
Hmm interesting...while in terms of GDP per capita and quality of life indices it will take a loooong time for China to surpass the US, challenging the US's position as the only remaining super power is likely to happen much sooner (say 20-30 years). The sheer size of the population suggests that even if a significant proportion of the country's population still languishes in poverty, seeing China's economy etc. outpace the US's (in overall size and not only growth rates) is not an unthinkable prospect.

i.e
US - 20 trillion economy/350 million people
CHINA - 35 trillion economy/1.2 billion people
(These figures are obviously made up but demonstrate what im trying to say.)

Back to lambo, this strategy seems very apt. There is no need for such a brand to go mass market because its future rests securely as part of a much larger automotive conglomerate. Premium products & enhanced profitability is a good direction for these 'niche' makers. As Roberto already suggested, Bentley should take note.

China' s econony doesn't outpace the USA economy in size even if we consider using the PPP Big Mac index.

And yes China as a super power will surpass USA by 2050 if we are to belive Henry Alfred Kissinger.

As for rich vs. poor, well is in the wild capitalism period, and to take knowledge about is the rich coastal cities vs. poor inland China.

As for Lambo, growth and prifitability are far more important than this exclusivity over Ferrari PR spin non-sense.
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Re: Lambo to maintain exclusivity through “controlled growth”. - 05-31-2006, 05:32 PM

No it doesn't outsize the US economy at the moment. But if they manage to sustain their current rate of growth, it will happen within the next 20-30 years.

I wasn't disputing the fact that there will remain for a long time a huge income gap within China. But in overall size (NOT per capita analysis) China will become eventuall surpass the US IF current trends continue.

Controlled growth is important. There is no need for lambo to build a full range of vehicles i.e SUV's, 4 door sedans etc.
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Re: Lambo to maintain exclusivity through “controlled growth”. - 05-31-2006, 06:45 PM

That's the problem with Porsches these days, they make so damn many of them and options on them are so expensive, that the resale values are garbage on most of the newer ones.

Bentley won't want to "take note" because, if I've heard correctly, the Continental GT and Flying Spur are big cash cows for VAG. Other brands within the company aren't doing as well, so they probably aren't about to axe a source of profit.
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