Rose Peng Quotations

First is the product itself, which must offer a fresh, bold, and exciting style to consumers, things that surprise and delight consumers, as well as durability and reliability. Second, the vehicle must be priced right in terms of its MSRP to reflect the net transaction price consumers pay to close a transaction. And the company needs to set the right production volumes and adjust the balance between retail and fleet/rental sales to meet the natural market demand.

It's crucial to establish the right MSRP and that means setting a price that is as close as possible to the actual transaction prices commanded by a vehicle.

The key to improving residual values is to realize that residual values are fundamentally impacted by decisions made throughout the product lifecycle, even though it is measured at remarketing time. We see increased residual values when we incorporate residual improvement strategies early into the decision-making process.

In Revenue Modeling and GLAD, we are developing a very sophisticated set of tools that allow us to analyze the whole lifecycle of the products. We collect as much data as possible, calibrate the data, and then feed all the significant variables impacting residual values into our models to get a complete picture of and insights about resale values.