Introduction
In an article (Aston Martin $50, 000 Compact for the masses), Aston Martin joined hands with Toyota, to make a new car model, the Aston iQ with a mutual agreement that Toyota Company will supply the components. This document, therefore, reflects my opinion on the article, in a management capacity.
Body
In my view, even though the cost of manufacturing Aston iQ is high, the company sales will significantly soar. The interior design and the compactness of the automobile will attract buyers to purchase this ultra-luxury product. Consequently, annual sales will soar, since they plan to sell 1500 cars yearly.
The Cygnet is eco-friendly; it since consumes less fuel. The automobile will also require little parking space due to its compactness. With the ongoing ‘save our environment’, people will tend to ‘go green’ and opt for this modern vehicle thus an increase in sales.
Moreover, the Aston iQ will provide Aston Martin and Toyota companies with a better platform for competition. Other companies are on the verge of unveiling new models that will try to outdo Cygnet. Among the competitors are, the Volkswagen’s Audi, BMW’s A1 super-compact and Daimler’s electric Mercedes car. Aston iQ will have an upper hand, since it will have set roots in the global market.
With the Toyota Company providing the spare parts, the cost of manufacturing the Aston iQ will dramatically reduce. However, since the selling cost is high, the gain will be high consequently increasing the earnings of both companies.
Conversely, many challenges lie ahead. With the looming recession times, many people lack the purchasing power. Therefore, a number of people will opt for other similar but cheaper models such as the Volkswagen’s Audi, instead of the Aston iQ. As a result, the two companies may record decreased profits.
Conclusion
The production Aston iQ will increase the annual sales of both Toyota and Aston Martin companies. The car is also eco-friendly and small hence many people will opt for this model. Although, the car is comparatively costly, people will still purchase it due to its new and attractive features.