Quote:
Originally Posted by MTBikerTim
I think you will find neu will do extremely well out of this deal. No matter what CC would have become a major competitor of neu. Now every motor CC makes will make money for Neu. Also the number of these motors sold will go up dramatically. For example Neu might only make a third of the profit for every cc motor sold then it would on it's own motors. Thing is cc is easily likely to sell over 3 times the number of motors neu does. This would double neus income. Thats a basic example and there are lots of other things to consider but I can't believe that neu wouldn't do well out of this deal. Castle will also do real well.
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I tend to agree. Neu motors are very nice to be sure, but not everyone buys them, so they have to raise the price to account for unknowns in the market. With bulk sales, they can adjust the price more aggressively since that IS a known.