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  • Beyond Veyron: What Does Bugatti Do for an Encore? Just Ask Alfred Sloan

31st May 2012

Beyond Veyron: What Does Bugatti Do for an Encore? Just Ask Alfred Sloan

posted in Car News Articles |

More than 80 years ago, GM boss Alfred Sloan figured out the way to keep his factories humming was to convince car buyers this year’s model is better than last year’s. By 1927, every American who could afford a new car already owned one, and as the average life of a new car was seven years, relying on more people being able to afford a new car for the first time, as well as existing customers replacing their old, worn-out cars, clearly was not a viable business strategy. Sloan’s insight became known as “planned obsolescence,” and it helped make GM the world’s largest and most profitable automaker.

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