"Economists Warn of K-Shaped Recovery as Automakers Adopt New Pricing Strategy. The COVID-19 pandemic has left a lasting impact on the global economy, and the automotive industry is no exception. According to industry insiders, car manufacturers have shifted their approach to pricing, capitalizing on supply chain disruptions to sell fewer vehicles at higher prices. This new strategy, a hallmark of the K-shaped economy, has seen automakers abandon the traditional practice of slashing prices to outsell their competitors, instead focusing on maximizing profits."
The K-shaped economy is alive and well. “Automakers are more disciplined,” Murphy said. Covid-driven supply-chain shortages showed automakers that they could make a lot of money selling fewer vehicles at higher prices. Before then, companies would slash prices to outsell one another, afraid of losing market share. submitted by /u/moutonbleu [link] [comments]
