The Lotus Cars Community banner

1 - 19 of 19 Posts

·
Registered
Joined
·
20 Posts
Discussion Starter #1 (Edited)
reason for increase...not devaluation?

As of Friday, I placed my order with Maplecrest in their next batch. Of course I had some questions and one was the reason for the price hike. They said it was because Lotus needed to go with a better shipping company that could handle increased production numbers and thus increasing our MSRP. BS?
 

·
Registered
Joined
·
6,293 Posts
Does it really matter why they have raised the price?
 

·
Registered
Joined
·
20 Posts
Discussion Starter #3
Patricko said:
Does it really matter why they have raised the price?
If it's because of devaluation, we could be hit again. If it's because of shipping companies as my dealer has hinted to, it's not likely to see another increase due to that.
 

·
Registered
Joined
·
3,577 Posts
CLS2Elise said:
If it's because of devaluation, we could be hit again. If it's because of shipping companies as my dealer has hinted to, it's not likely to see another increase due to that.
Nope. Then the next one would probably be due to devaluation...
 

·
Registered
Joined
·
6,293 Posts
CLS2Elise said:
If it's because of devaluation, we could be hit again. If it's because of shipping companies as my dealer has hinted to, it's not likely to see another increase due to that.
The Dollar has significantly devalued over the last year vs the UKP. They could still raise the price again if they need/choose to, the reason could be any number of things...
 

·
Registered
Joined
·
3,204 Posts
Lotus said in the price hike memo that the increase was due to devaluation. It is likley that the car will continue to rise in price. We can only hope that the increases are yearly and not monthly...
 

·
Forum Founder
Joined
·
29,081 Posts
I have no idea why your dealer is telling you that.
 

·
Registered
Joined
·
677 Posts
There is always a cover story! Like this one ... The reason I am getting a Lotus Elise is that I need a small commuter car ;-) Does anyone believe that?

What is the real reason Lotus increased the MSRP? Because they want to make more money and they think they can get it without loosing customers.
 

·
insert clever title here
Joined
·
7,702 Posts
I think it's BS. If shipping charges increased, I'd expect to see an increase in the *destination* charge, isn't that what it's for? Not the MSRP. Also, using 'increased production numbers' as an excuse doesn't hold up, as Lotus still has not ramped up production to the original level they planned, announced back in January (they annouced the total number of cars they'd be bringing in). They knew then what their transport needs were, and have not yet exceeded original expectations. Lastly, don't you usually get *discounts* for buying any goods or service in higher volumes?
 

·
Registered
Joined
·
6,802 Posts
Reposted: this is the text from the official press release from Lotus, it was exchange rate driven.

Another dealer posting inaccurate and/or wrong information as to shipping driving the price change.
Chris

>>>>>>>>>>>>>>>>>>>>>>>

LOTUS CARS USA ANNOUNCES NEW ELISE PRICING





DULUTH, GA (September 1, 2004) – Lotus Cars USA, importer and distributor of British made Lotus sports cars, announced a change in the MSRP of its new Elise two-seat roadster today, citing adjustments for exchange rates. Effective September 1, 2004, the MSRP for a base 2005 Lotus Elise is $40,930, up $945 (2.3%) from $39,985. Option package costs and delivery charges will remain unchanged.



“The Elise continues to offer a superior value due to its outstanding performance and limited production volume,” said Lotus Cars USA CEO John English. “We are reluctant to increase prices from the introductory levels, however a challenging exchange rate environment requires Lotus to make an adjustment at this time.” English noted that the price increase is substantially less than the actual devaluation of the U.S. Dollar against the British Pound since the debut of the U.S. market Elise.



>>>>>>>>>>>>>>>>>>>>>>>>>>>>
 

·
Registered
Joined
·
677 Posts
While the Lotus press release may be accurate; it is less than timely. The major changes in the exchange rate were before February of 2004. I feel the MSRP change should have been announced before Lotus accepted the first order. The fact that the change happened in September of all months indicates to me that Lotus must have had to contend with a significant amount of corporate politics in order to make the change.

While I may understand the reasons behind the MSRP change, I don't have to like it or respect the way it was done. At a minimum, I would call it poorly executed.
 

·
Registered
Joined
·
6,802 Posts
Aletes, was a lot of controversy about pricing of the elise just before the LA show in Jan 04, some people were firm on the sub 40k price, some wanted more (42k range) however, the sub 40k price was leaked early and forced their hand.

Conspiracy theorist continue to think Lotus is making a boatload of money on these cars and raised the price to further line their pockets, truly a crock.

Chris
 

·
Registered
Joined
·
3,577 Posts
Some conspiracy theorists think that there are Lotus yes-men that will defend any of Proton's actions whether or not they're right.
I think that I understand why they raised prices. I think that the way they went about it stinks.
 

·
Registered
Joined
·
677 Posts
zvezdah1 said:
Conspiracy theorists continue to think Lotus is making a boatload of money on these cars and raised the price to further line their pockets, truly a crock.

Chris
It is hard to find a conspiracy in a 40 to 50 thousand dollar hand made car. The price is on par with a fully built up kit car and definitely less than other hand made production cars.
 

·
Registered
Joined
·
1,679 Posts
aletes said:
While the Lotus press release may be accurate; it is less than timely. The major changes in the exchange rate were before February of 2004. I feel the MSRP change should have been announced before Lotus accepted the first order. The fact that the change happened in September of all months indicates to me that Lotus must have had to contend with a significant amount of corporate politics in order to make the change.

While I may understand the reasons behind the MSRP change, I don't have to like it or respect the way it was done. At a minimum, I would call it poorly executed.
Agreed.
 

·
Registered
Joined
·
3,684 Posts
left hand--exchange rate..............new shipping co.--right hand
from lotus...........................................................from a dealer

i choose lotus



that dealer wouldn't be the one selling a car on e bay for $+49k?
 

·
Registered
Joined
·
1,201 Posts
09/26/2004
Dow Jones News Services
(Copyright © 2004 Dow Jones & Company, Inc.)



LONDON (Dow Jones)--U.S. President George Bush is being urged to signal a dollar devaluation of up to 20% to rebalance the global economy ahead of Friday's Group of Seven and International Monetary Fund meetings in Washington, the U.K.'s The Business newspaper reported.


http://www.amtddj.inlumen.com/bin/djstory?StoryId=Cqvy:WaebqLqWmde2mtG
 

·
Registered
Joined
·
2,195 Posts
aletes said:
While I may understand the reasons behind the MSRP change, I don't have to like it or respect the way it was done. At a minimum, I would call it poorly executed.
Yep. Things that could have made it go more smoothly:

- Print some warning. If they would have made a few comments in articles or press releases about feeling the pinch of the dollar, or needing to make more profit to be viable, well, that sets us up for less of a surprise. US companies pre-announce everything -- "Toyota rumored to announce next week that they may be considering and end of the MR5. Maybe"

- Get the increased MSRP into the car magazines instead of the untrue price. Allowing "under $40k" in every article is just deceitful. A good conspiracy theory would be that this was totally intended.

- Increase MSRP before delivering the very first car. How many cars were actually delivered at the lower price? Very few.

- Have SOME kind of grandfathering or nod to the patient wait-list folks. Since the first two years are already on-file, grandfathering everyone is out of the question. But what about -- first 10 to each dealer? Phased increase? (Cars invoiced by December only $500 increase) Cars on order before 2004? I dunno, something other than Midnight Tonight.

My inner Ferengi is really disturbed to think I won't get the best reasonable price on the car. There were those who got it for less. By no coincidence, those "connected" got it for $1k less than everyone else, even though they got the first cars. Makes me feel negative and confused. Fortunately, the few I know (Randy, Chris) all deserve it, so I can live with that. :)

But I'll file it under "Negative Business Lessons" somewhere between New Coke and the Del Sol replacing CRX..
 
1 - 19 of 19 Posts
Top