If company 'A' feels that its current offering is not profitable, or in danger of decline, closing the company and winding down services is much more favourable that disappearing overnight.New Duke wrote: ↑Mon Sep 16, 2019 10:09 pmNo, you've missed what's going on on this case and (edit: gonna wind my neck in). This this isn't the same as the RX7 dip, or the same as what happened recently with LC Rotary (which seems to have fallen on hard times and forgot their obligations in the process).
RR is a relatively (for our community) big business and is still trading as a store and garage and gets the bulk of the rotary business, regardless of a change in ownership on paper. It's been common knowledge that they've been trying to shake the RX8 side for a while and shift to more profitable Mustangs etc. So I hope fobbing off legacy rotary customers isn't just part of that strategy. But it sure looks that way. It's not that they're dying off, regardless of appearances.
If a company wishes to chase a more profitable segment, it can't ditch it's existing commitments (e.g. a lifetime warranty). And if a company buys that company then it inherits all existing contracts, unless the assets only were stripped and purchased which doesn't look possible here.
Hopefully Ben has more info and will enlighten us/put me in my place. Because... ewww... it looks shady.
EDIT 2: Check out the accounts for the past couple of years. They're available online. Suggests as above.
I don't know why you think the rx8 market isn't in decline, I have that impression purely from the opinion of a few people in the business, the horses mouth... so to speak.
I would do the exact same thing and completely agree in the move. I don't agree with the issues of warrantees though, that stuff is a b1tch.
I've been saying the same thing for years, and the writing is on the wall, all rotary specialists are in decline and drying up. All the best luck to the new guys in the market, but I think these newer rotary specialists are fuelled by passion rather than good market research and sound business model, which is recipe for disaster.
A top engine rebuild with mega porting should cost 5-10k if done correctly, probably 1 in 100 rx8's have that, so there is this horrible rework with warrantees that goes on... having a Bridgeport without improving cooling for example... within 1 year of a few track days that car will be back to the builders for another rebuild. it's simply not worth it to any company to rebuild engines when the owners don't want to part with the cash.