Quote:
Originally Posted by Barkeep49
I think if some non-US company wanted to enter the market they could, but as Jon points out, police vehicles are quite specialized in their needs and so it's not just a matter of taking a car and slapping some lights on it. You need to tune the engine different, have better suspension, etc. And you have to do it at surprisingly low prices: I am always amazed when I see how little, relatively speaking, my city pays for new police vehicles. I am guessing the potential profit doesn't justify the expense of trying to break into the market.
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The profit of those vehicles comes in the parts business.
Parts is the high margin product in the car world anyway. basically if a manufacturer can sell 50,000 units annually at pure total cost the economy of scale it affords will allow them to increase margins on the balance of product line. So the fleet costs is pretty darned low. Then the parts and aftermarket support make it a profitable venture.