Why Are Cars So Crappy?
Lease-oriented Evolution Car manufacturers have two different approaches: leasing oriented and value oriented. Basically the US is a major market for car lease, we, Americans like to take stuff now and pay later, we do not bother that it will cost us a lot more, we just evolved this way. American car manufacturers evolved with us with the same set of mind: they do not care what happens to the car in three years, it is none of their business. You may be surprised, but GM Financial is valued more than GM itself (including GM Financial)! As long as the major source of revenue is not a car sale, but 3-year lease, there are no incentives to make good reliable cars. Value-oriented Evolution Then came Japanese and Europeans – they evolved in a value-oriented system where people did care about what happened to their cars as they could not afford throwing money on the wind every third year. This is exactly why our cars are crappy and imported aren’t. In fact, there are more American det
