Kalistan

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MoCo ramps up production
Recent IC supply increases and PV developments driving domestic demand
Sulari, Duchy of Suldanor
August 1, 5633


MoCo has increased production over 10% for the first time in decades

If there is one thing that can be said for Kalistani Industry, its that it is steady.  Fiscal and monetary policies, as well as relatively light trade volume internationally allows the economy to keep economic growth within a half a point on either side of dead zero, controlling for Population growth.  This regularity also encourages companies who sell consumers their products to focus on durability and dependability, while capitalist economies rely on built in obsolescence to encourage consumers to repeatedly purchase the same thing over and over again to fuel the myth of infinite economic growth.

MoCo has struggled with this twin pressure for centuries.  There is no real incentive to increase production because there are few outside of Kalistan who buy MoCo automobiles, and those that are sold domestically are so durable that it is expected to see twenty and twenty-five year old vehicles on the road with more than 300,000 miles driven.  The fact that the vehicles are electric, and therefore don't suffer from the degredation in performance that one finds in gasoline engines (due to few moving parts) prolongs lifespans even further.  Combined with relatively inexpensive fuelcell and electric battery replacement, and the only real driver in production seems to be taste and consumer preference.

That all seems to be changing, however, as MoCo is noticing a sharp uptick in new buying in the Kalistani Market.  "As far as we can tell," said MoCo CEO Lawrence Petty, "a lot of the new buying has been driven by relative increase in standard of living of the average Kalistani Citizen.  Wages have crepted up slowly over the decades, as costs have dropped across the board, and unlike the inflationary tendencies of capitalist nations, Kalistani corporations aren't allowed to raise prices just to soak up extra money in the system.  We have a specific profit margin we file with the National Government, and that's enforced.  So, while we do better the more people buy, more people can now afford to buy more.  That seems to be the only thing that can account for it."

In fact, Petty says that new MoCo sales are up a full 10% over the past year, and more than 20% over a decade ago, as more Kalistanis are beginning to see owning a new car as something that is within their price range.  "The price of a new MoCo, fully loaded, is about 10% of an average annual wage for the Kalistani Worker now," said Petty.  "That is down from a decade ago, where a new MoCo cost that same worker about 22% of their average wages.  You're gonna see a lot more people buying a lot more cars in that situation, while older ones are turned in for recycling far more often than we have ever seen before."

While a number of systematic push factors have generally improved the incomes of workers, several policies have also helped MoCo slash costs.  "You name it:  KalMD flooding the market with very inexpensive microprocessors is one part of it, but we saw this before they even started that.  There is new, cheaper, and longer lasting battery and fuel cell tech that is prolonging the lifespans of the power sources that companies like KalTech are scaling now.  The recycling program allows us to reuse a lot of equipment in new cars that have seen life before but are still perfectly functioning, like car stereos and transmissions and so forth, and that serves to knock off a huge chunk of the price on trade in.  Plus we see companies like Sulari Solar pairing with researchers in Yoshimi to develop new photovoltaics that are both environmentally friendly and generate some electric recharging capability to extend battery life and charge while a car is moving, making the electrical systems even more efficient. All of these, along with less expensive sourcing of materials, stable labor costs, and increasing production capabilities have led to a fairly quick decline in prices to produce an automobile, and allow us to focus on making the car more dependable and longer lasting, which is ironic, as people are rushing in now to buy new ones."

Ultimately, purchasing a new car at a relatively low price is a good thing, says Petty.  "It's a great thing for our stock holders!  But for the consumer it makes a lot of sense too.  We are always working to improve these cars, to make them work better, longer, and break down less often.  We are working to fine tune our transmissions, and we are working to fine energy supply systems.  We are working to make them faster, more comfortable, smoother, and sexier.  And we have this advantage because we only have independent and foreign competitors to compete against.  And speaking of that, MoCo sold more new cars in Kalistan last year than all foreign manufacturers combined.  If you buy new, you get the benefits of our constantly improving tech package:  you get a more reliable, more efficient vehicle that may look sharper, and drive better, than even last year's model, and is probably a little easier on the bank account even than what you paid already for one."

Petty predicted continued growth in production and profits for MoCo.  "We would export the cars we produce internationally, but nobody seems to know about or care about MoCo in other countries.  We have a pretty good market in Gaduridos, and an excellent, stable market in Kalistan.  For our size, that is just fine.  Pound for pound, we can outcompete any car on the road.  But we don't have to.  Would I like to see more international sales?  Sure.  But even if one country bought as many new MoCos as Kalistanis did last year alone, we would quickly run out of stock.  So we're focused at home now for the time being.  If something new develops, it is what it is and we'll cross the bridge if we ever get there."

MoCo Stocks are up another 1.5% on the week in the KalSiE, capping off a 5 year long multiple record setting run.

@TheRepublic