Does TVR need to increase production numbers

[jpf]

Saw in Autocar that TVR's production was below 900 cars. Seems to be well off the high point. For TVR to continue to be successful, do you think they need more sales? If not, why? If so, how do they generate more sales?

[rdhawkins]

Think it said in Evo that they are making less cars than their Griffith/Chimaera heyday but the cars they are making are more expensive now so it all balances out.

[tvrinbfg]

In the early to mid 9Ts TVR made circa eight hundred to a thousand cars a year. Because so few were made, residuals were very strong, which was brilliant for owners.

Nowadays TVRs are largely hand made, so if they employ fewer people to make fewer cars, their costs are less. If they make good profits on these fewer cars, that's good for TVR too? So they don't need to make too many cars.

[crankedup]

Agree, Morgan seems to stroll along well enough, hope TVR do not go for higher production.

[Ahonen]

When I started there ('98) production was at 38 cars per week, but they were thrown together pretty badly and required many hours in 'rectification'. If they're better built these days then they really should keep the production levels as low as possible. Anyway, there's no point making more cars if you can't sell them.

Waiting lists are good things. Personally, I'd much rather wait an extra couple of months for a car entirely bereft of niggles or glitches.

>> Edited by Ahonen on Tuesday 10th February 18:39

[Ahonen]

tvrinbfg said:

In the early to mid 9Ts TVR made circa eight hundred to a thousand cars a year. Because so few were made, residuals were very strong, which was brilliant for owners. Nowadays TVRs are largely hand made, so if they employ fewer people to make fewer cars, their costs are less. If they make good profits on these fewer cars, that's good for TVR too? So they don't need to make too many cars.

To be honest, I don't think the production methods have changed much if at all. The main problems seemed to be at the tail end of the '90s when they were knocking cars out as fast as they could.

[Waveboy14]

As "tvrinbfg" mentioned, the fewer cars made, the higher the residuals. This is one major argument for not building more cars, when you can maintain your profit margin (currently possible).

However, as TVR has always been a little brand (outside) the UK, increasing production would definitely both benefit the brand (recognition) and the cars (higher quality due to more recurrence). This will however reduce the current flexibility in the range of cars.

In my opinion, TVR should stay the way it's working now, except increase the quality of their products. As more and more brands are trying to build a "sportscar", loaded with electronics, weighing 1.5-two tons, TVR will remain profitable.

Good job TVR!

[swilly]

TVR need only make enough cars to ensure it is viable to maintain using their inhouse engines and hopefully gearboxes.

[steve-p]

tvrinbfg said:

Because so few were made, residuals were very strong, which was brilliant for owners.

Residuals were very strong back then but not specifically because few cars were made, more exactly because demand exceeded the rate of supply. The waiting list was several months and the first couple of years depreciation was very low at that time. Even used cars were in relatively short supply. The situation is somewhat different nowadays. There are more rivals, and for anyone wanting a used Griffith or later TVR, there are hundreds if not thousands for sale at any one time.

[tvrgaas]

steve-p said:

the first couple of years depreciation was very low at that time.

Also the new list price rose considerably. The S1 went from about £13K to £18K for the S3. The 4.x Griffith was round £24K, but was £40K in the end. (approx) As the new one became more expensive, you bought a second hand one cheaper, but it was virtually the same price as the owner had paid for it.

Inflation, don't you just love it - bring back maggie and all that! Actually the spec increased as well - electric windows, PAS, etc.

The factory used to do 1000pa. I think about 1995 PW said in an interview that was about the right number - people were asking for the return of a smaller car(Vixen/1660M). They'd just stopped the S(3000M) series.

Then people twigged you could get a Chimaera in your choice of colour for just a few more K than a used one, so the order book went up. and look no depreciation, but then second hand chimaeras became difficult to shift. The factory moved to shift work to increase the production. They also in about 1999 reorganised the production flow, moved to 5 or 6 lines rather than the two rows around the shed.

When the IT industry went wrong (Y2K Bug anyone!) and the Tuscans had a small issue, I think TVR effectively "let go" the workers on one of the shifts.

It's not as if they have major plant to depreciate - a couple of welding kits, home made moulds and the paint shop.

So while I'd love a 3000S/S-series replacement, (Ford V6 engine in the Tesco/Tamora?), and it would get the volumes up, I don't think it will happen - unless things get very much worse.

All IMHO.