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However, you're applying American market concepts to a decidedly not American market. There's no evidence in the article, just speculation. Do the tarted-up Nanos actually sell better than the base models? How weak, exactly, are sales? Is the company losing money on these?
Typically, a company doesn't invest in a generational redesign of a vehicle unless it's profitable. While it may not have been the runaway success that it was hyped to be (few things do), I'd take this as a sign of the model's success, not its failure. I'd be happy to hear actual evidence to the contrary.
Flared and JDM'ed SR5 liftback. http://orlando.craigslist.org/cto/4888326602.html
Clean-looking, square-headlight wagon. http://orlando.craigslist.org/cto/4896332202.html
Deliciously brown sedan with 2.4-liter Tacoma engine swap. Probably PDQ. http://orlando.craigslist.org/cto/4862147809.html
Red wagon with an unfortunate improvised roof rack, but with a 1.8-liter engine and 5-speed manual. http://orlando.craigslist.org/cto/4893688952.html
Which means I never repacked the rear bearings on my W123.