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It's 1920 and I have a gut feeling the competition in this game is selling every car with loss. In some cities certain manufacturers are selling luxury cars for as little as 500 dollars. That's like selling a lincoln for the price of a Model T confused. I can't even produce a decent luxury car worthy of the name for less than 1200 dollar. what really stings is that the AI's 500 dollar cars are even getting better ratings than my 2000 dollar cars biggrin
There's an easy way to check this. Open the "review magazine" and look for one of the "suspicious" competitor vehicles. The manufacturing cost will be listed there. Then simply compare this number to the acutal selling price that the AI has set. If these numbers are very close or the AI is actually selling stuff at a loss...the AI probably won't be competing for much longer Wink. AIs do go bankrupt (quite often, actually) or get purchased by other competitors.

If the unit cost for the luxury cars you mentioned is just 250USD, then 500USD may well be a reasonable sum to ask (provided that labor costs aren't too high). Also note that ratings are still slightly bugged (especially the overall rating), though you should generally be capable of turning out a reasonable vehicle at an equally reasonable price (the former is something the AI usually struggles with as their vehicles often lack in many rating aspects).
Could you upload your save game so I can take a look?
Thanks.

PS Model T was down to $200 by 1920s....
Don't worry, false alarm! Somehow the luxury prices seem to have got up again to a more reasonable 1-3 thousand dlr range since I last checked yesterday. Good thing too. That had me worried. I'll definately check the reviews magazine more for AI unit cost thanks, Freeman! Wink